The property portfolio comprised a number of properties in North London. The borrower had come into financial difficulty, and the existing lender was in the process of foreclosing on the properties. A receiver had been appointed and the properties were set to be auctioned-off.
Montello arranged a facility for the borrower which allowed him to pay out his existing lender (and the receiver’s rapidly increasing fees).
Christian Faes, Managing Director at Montello, explains:
“Montello are not lenders of last resort, but we are able to provide fast and flexible short term finance when the situation presents a viable lending opportunity.”
In this particular transaction, the bridging loan was what is often referred to as a ‘closed bridge’, as the borrower had a secure exit for the loan which was a refinance with another bank. The refinancing bank’s credit committee had approved the refinance, but was dragging its feet with documentation.
Mr Faes explains:
“The loan presented a solid bridging finance case”. He continues, “the borrower’s existing banker was frustrated with the delay, but more likely, saw that there was significant equity in the portfolio and it could be sold off quickly and easily.”
