Platinum Global Bridging Finance Arranges A EUR15m Bridging Loan For Paris Apartment

What was the bridging loan situation?

International Bridging Finance - France

International Bridging Finance – France

We were recently approached by a high net worth (HNW) client – a British citizen residing in Monaco – who wanted to refinance his existing property finance loan on his large stately home in Paris. He was looking to secure a loan of circa €15 million and wanted to remove his existing lender and release equity to renovate the home situated over 4 floors in Paris. It was clear to us that once the initial improvements were made on the property that the property’s value would increase by up to 30% making it close to EUR20m in value. The client would then refinance the international bridging finance with a French bank.

What was the lending issue?

Our client’s options were limited for a few reasons. Firstly, the sheer size of the single unit was an issue. Secondly, with this being a truly unique asset with nothing similar in the area, there were no comparables – our client had developed his beautiful stately home to a very high standard. Thirdly, there is a limited number of lenders who are happy to support bridging loan deals in France. This meant, as opposed to the usual range of 300 plus lenders available to us, we had less than 8 lenders we could approach.

What was the bridging loan process?

We took advantage of our extensive list of lenders and our specialist team sourced a lender sophisticated enough to gain a good understanding of the client’s background and future income. With this being a very technical deal, it required a considerable amount of underwriting based on the individual, rather than pure asset-based lending alone. As such, we carried out a thorough presentation, highlighting the strengths of our client’s case and his available security, which was key for the lender to gain a full, holistic understanding of his circumstances.

By nurturing solid and long-lasting relationships with our trusted network of lenders, it is extremely rare that we are unable to find a solution for our clients – however, complex their case. We had confidence in our chosen UK-based lender – with whom we had completed on multiple successful deals in the past – and so we knew this case would be of interest to them if we could provide sufficient comfort.

We worked tirelessly with the lender to structure the deal in a way that worked for both parties and ensured communication was seamless and of the highest standard throughout the entire process.

What was the solution to secure bridging loan finance?

As a result, we secured exactly what our client required. Although it took time, ensuring all parties were happy with the arrangement allowed us to clear the loan with the existing lender and secure a longer term at 18 months so the client could complete the renovations.

Due to the loan structure, we are now maintaining regular contact with our client and the lender. Working as a team in this way, we can ensure this will be a smooth transaction. Our client is thoroughly relieved and thrilled with the result we secured for him, as it has successfully granted him the time he needed to refurbish the fantastic premises in the heart of Paris.

Platinum Global Bridging Finance is a distinguished high-net-worth finance broker. We specialize in providing tailored financial solutions, including Property Bridging Finance, Development Finance, Lombard Loans, Single Stock Loans, Margin Stock Loan and Commercial Property Finance tailored to meet the diverse needs of our clientele seeking robust financial lending solutions.

By on November 18, 2022   /   Blog  
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