Project Description

  • SOUTH EAST

  • 1,100,000

  • 6 months

CHALLENGE

  • To assist a Borrower, the owner of a substantial unencumbered London Hotel, and facilitate the purchase an additional property in the city.
  • As the security was the Borrowers operating five storey mid-terraced hotel, and being a responsible lender, we had to be satisfied that the hotel was amongst other things planning and fire regulations compliant.
  • From our local search it transpired that there was historical enforcement action dating back quite some time which was still showing as open.
  • The finance was needed to be turned around within a short-time.

APPROACH

  • We worked with the Borrower to establish a solution, through the provision of legal indemnity insurance, to cover both the borrower and our investors in the event of any loss of value on the hotel property resulting from commencement of enforcement.
  • Managed the complexities of security within a Grade 2 listed building, in addition to liaising with an off-shore Borrower.

RESULT

  • The finance was agreed and completed to schedule which enabled the borrower to purchase the additional property.
  • Purchased as a short-term investment opportunity for the borrower through being redeveloped and then sold to enable the redemption of all outstanding’s.