Bridging lender WSP Capital has completed £490,000 of auction finance at 75% loan-to-value, four days after issuing its formal offer. The borrower's existing lender changed its position late in the process, with only days left before the completion deadline.
The borrower risked losing their deposit if the purchase failed to complete on time. The case reached Churchbridge Capital, WSP Capital's exclusive origination and packaging partner, through an introduction from Golden Trust Capital, whose client had already committed to the purchase and needed a replacement facility at very short notice.
"When another lender pulled out of a challenging auction purchase on the day our client's extension expired, the team at Churchbridge Capital and WSP Capital stepped in and completed the loan in just four days," said Christopher May, an industry veteran at Golden Trust Capital.
"George was brilliant throughout, finding a solution in very difficult circumstances. An outstanding effort and a fantastic result for our client."
Auction finance on a four-day clock
Following an initial call, Churchbridge Capital began structuring the transaction for WSP Capital, which approved the facility. The timetable left no room for error. The sale of a property in a higher-risk jurisdiction formed part of the background to the case, so WSP Capital required enhanced anti-money laundering due diligence on an individual connected to the transaction. Those checks were completed in full and were satisfactory.
An existing valuation report also had to be retyped for WSP Capital's reliance. London's Surveyors and Valuers delivered the retyped report within 24 hours, and the loan completed four days after the formal offer was issued.
"Auction deadlines leave no room for delay," said Robert Feldman of London's Surveyors and Valuers. "When WSP Capital asked us to retype our existing report, we turned it round within 24 hours without compromising the quality of the valuation.
"Fast, reliable turnaround on time-critical cases is central to how we work. We are grateful to WSP Capital for the opportunity to support them on this transaction and look forward to working with them on many more."
"When an existing lender changes its position this close to an auction deadline, the borrower is not looking for an indicative appetite or a promise to review the case next week," said George Wall, managing director of WSP Capital (pictured).
"They need a lender that will look at the security, understand the circumstances and give a clear answer. Speed in bridging does not come from skipping work. It comes from identifying the real issues on the first call and dealing with them in parallel rather than in sequence.
"Because Churchbridge was structuring the case from the outset, the questions were answered before the offer went out, which allowed the lawyers to move straight to documentation. Brokers need to know that when we say yes, the loan will complete."
If you’re exploring bridging or development finance, get in touch and we can connect you with the right lender.
