Platinum Global Bridging Finance Arranges A EUR15m Bridging Loan For Paris Apartment What was the bridging loan situation? 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
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