Complex Finish & Exit completion despite inaccurate PMS report
A borrower was looking for a Finish & Exit facility for their part-complete project in Edmonton, London, and they turned to Lendhub for a solution.
The project, an end-of-terrace conversion into three self-contained flats, had an existing lender requiring repayment and last-minute financial gaps threatening to stall progress. Lendhub’s expertise and flexibility ensured the necessary funding was secured, allowing the project to move forward.
The Challenge
1. Part-complete development
The project had been ongoing for some time but was put on hold due to planning issues and personal circumstances.
2. Inaccurate PMS
While an existing PMS report was available, it omitted key information and was not from a panel-approved provider.
3. Unexpected financial shortfall
A final redemption statement revealed the borrower was short on funds, requiring last-minute adjustments.
4. Communication issues
The borrower’s full-time job made it difficult for them to communicate during business hours, threatening further delays.
The Solution
- Understanding the project delays
Our team’s in-depth knowledge of development projects enabled us to assess the situation and gain confidence in the borrower’s ability to complete the project.
- Working with existing PMS
To avoid delays, we agreed to proceed with the existing PMS report while structuring the facility with a financial buffer, making sure there were enough funds to complete the development.
- Legal collaboration
Our team worked closely with solicitors to source the indemnity policy from the previous loan and complete the deal on the same day.
- Flexible loan structuring
We adjusted our terms two days before completion, increasing the loan amount to cover the full redemption balance.
- Adapting to the borrower’s schedule
Understanding their limited availability during business hours, we accommodated out-of-hours communications to keep the process moving.
The Outcome
Lendhub successfully provided a £2.4m Finish & Exit facility at 68% LTV and 64% LTGDV over a 12-month term. We enabled our client to repay their existing lender and continue development without further delays.
