Refinance of a portfolio of four warehouses onto an industrial property mortgage, releasing capital for further property investment.
Our client is a family which runs a shop-fitting business in Rainham, Essex, with the trading premises and 3 adjacent industrial investment properties owned within a special purpose vehicle. The client wanted to refinance the £1.7m property loan away from their incumbent bank and onto a fixed rate mortgage for industrial property to avoid being in a position where rising variable rates would put them into financial difficulty.
With interest rates in flux our specialist property broker, Pratik Shah, prioritised getting a Decision in Principle the same day, before rates were pulled later that day.
He then got the case approved and through conveyancing, but 2 days before completion local searches found potentially contaminated land. Because of this the lender refused to release funds without proof that this was designated as low priority by the local council. This became a cache 22 situation where the lender wouldn’t move without the council’s confirmation, but with the council uninteresting in commenting on individual cases.
Having spent tens of thousands on valuations and solicitors, the transaction was at risk of being aborted.
Pratik negotiated a 1 month extension to the loan offer, honouring the existing low rate, and set about lobbying a variety of council departments in order to seek a written confirmation from them that the land was low priority on their environmental plan.
Despite encountering unresponsive parties Pratik’s resourcefulness and persistence prevailed. The council eventually provided the required confirmation at the 11th hour, designating the site low-priority. Pratik engaged Groundsure to update their environmental report, the valuer to extend the validity of their report and the lender to rush through the completion.
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