14 day completion using desktop valuations
The current market is presenting some interesting challenges. The obvious one applies to borrower and lender – and this is the assessment of risk, which isn’t easy during these unprecedented times. There are also practical challenges, such as getting a valuation completed – especially for properties which are occupied. However, with the right people involved, great things are possible.
Our long-standing broker partner, Chris Oatway of LDN Finance, recently asked us to provide a £408,000 facility to a borrower who needed to release equity from three investment properties in Manchester. The borrower needed to fund an onward purchase and decided that the quickest way to achieve this was to leverage against properties he already owned.
As the properties were all tenanted, COVID-19 restrictions prevented a surveyor from visiting. However, the LTV of 60% combined with an experienced borrower and a trusted broker meant we got comfortable using a desktop valuation.
Having cleared this hurdle we were then able to proceed normally and our lending team (Stephen Davison and David Foster) pulled out all the stops as usual. Our lawyers were also quick and efficient … and the deal went from application to completion inside 14 days. Indeed, most of our post COVID-19 completions have been achieved in less than two weeks which is a testament to the team and our professional partners.
As well as frequently providing commercial bridging loans, we have been active in the residential investment sector since our inception over 7 years ago.