Market Financial Solutions has provided a £3m Bridge Fusion facility to enable a borrower to complete on a prime residential acquisition against a tight deadline and with a vacant property.
The specialist lender stepped in as the borrower sought to expand their portfolio with the purchase of a prime residential asset, but faced mounting pressure from the vendor to complete quickly.
The property was vacant and generating no income at the point of acquisition, creating potential challenges for both the transaction timeline and the borrower’s proposed refinance exit. Without clarity over tenancy and long-term funding, there was a risk that the deal could stall.
Market Financial Solutions’ underwriting team worked with the borrower to establish that tenants were lined up to move in upon completion.
At the same time, the borrower was already in discussions with several institutions regarding longer-term finance, providing comfort that the refinance strategy was progressing.
Given the circumstances, the lender concluded that a longer-term bridging facility would offer additional flexibility should complications arise.
The deal was therefore structured using the firm’s Bridge Fusion product, which offers terms of up to 24 months, compared with its standard bridging loans of up to 18 months.
The loan completed at £3,000,000 and 75% LTV. To support affordability in the early stages, the underwriter structured the facility with rolled-up interest for the opening months, easing initial cashflow pressures while tenants were secured and exit discussions advanced.
Paresh Raja (pictured), CEO of Market Financial Solutions, says: “This case is a strong example of how our Bridge Fusion product gives borrowers the flexibility they need when timing and structure are critical.
“With tight deadlines and a vacant property, it was essential to provide a solution that not only enabled a swift completion, but also protected the borrower’s longer-term refinance strategy.
“By offering an extended loan term and using affordability tools such as rolled-up interest in the early months, we were able to give the borrower valuable additional time while they secured their tenants and progressed discussions with longer-term finance providers.
“It’s this ability to tailor both term and structure that allows us to support borrowers through transitional periods, without compromising on speed.”
