Crystal SF rescues £1m deal after major lender pulls out

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  • 15/03/2018
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Crystal SF rescues £1m deal after major lender pulls out
Crystal Specialist Finance joined VAS Panel and Priority Law in saving a £1m development finance project after the original lender withdrew its offer days before completion.

 

The South Birmingham project had planning permission for seven houses and one apartment, with construction having already begun.

However, the original lender declined to progress the case when it was discovered that two areas of unregistered land fell on the plot.

After being contacted by the broker, Crystal arranged for a new potential lender’s solicitor to review the land titles, then obtained a new valuation report without the two unregistered plots – allowing the lender to take a commercial view with the support of existing indemnities.

The lender concluded there was enough equity on the site to provide the client with 100% of the build cost on a 12-month term with a refinance exit route.

Crystal declined to name either of the lenders involved.

Jo Breeden (pictured), managing director of Crystal Specialist Finance said: “This is a case of leading industry experts coming together to truly understand a deal and work in close cooperation to ensure the correct outcome for the client, no matter what the issues.

“Gina May at VAS Panel and Rob MacNaughton at Priority Law worked seamlessly with our own development finance director, Michael Fisher. After sourcing a lender, the extra due diligence undertaken at the start allowed us to find a solution for the client which did not accrue any additional fees.”

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