Case Study · United Kingdom

Residential Bridging Loan Refinanced in London, UK

9 April 2018

Residential Bridging Loan Refinanced in London, UK

Problem

  • An Individual had an existing loan with a U.K. bridging company and had defaulted its monthly repayments due to short term liquidity issues.
  • The Individual approached Rikvin Capital when the U.K. bridging company stated they were going to auction off the property due to nonpayment of interest.

Solution

  • Rikvin Capital evaluated the situation and acted swiftly to pay off the bridging loan company and take over the existing loan.
  • Rikvin Capital permitted the client with some breathing space to resolve its short term financial issues before resuming the monthly interest repayments.
  • The individual later refinanced with a bank and saved himself from having his property been liquidated.

Related: Read about when Rikvin Capital financed a retirement living development in Glasgow

  • Location: London, United Kingdom
  • Market Value: £1,050,000
  • Loan Amount: £840,000
  • Loan-to-Value: 80%
  • Duration of Loan: 10 Months
  • Payment Schedule: Monthly
  • Asset Type: Apartment
  • Completion Time: 7 Days

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FAQ

My existing UK bridge lender is about to auction my property. Can Rikvin Capital take over the loan?

Yes. The London case here is exactly this scenario: the borrower had defaulted on a UK bridge facility and the lender was preparing to auction the apartment. We refinanced inside 7 days at £840,000 against the £1.05 million property (80% loan-to-value), repaying the existing lender and stopping the auction.

How fast can a default-rescue refinance complete?

7 working days is realistic when speed is essential, as in this case. We compress KYC, valuation and legal in parallel. We also coordinate directly with your incumbent lender on the payoff figure to keep their auction plans suspended during our process.

Will Rikvin Capital give me time to fix the underlying cash-flow issue?

Yes. Our refinance gives you a fresh term with breathing space to resolve the situation. The London borrower used the time to refinance into a long-term bank mortgage, saving the property from liquidation. Each case is reviewed on a fresh basis rather than carrying over the prior lender's pressure.