Arc & Co. arranges €11.1m complex French bridge

Published on

Arc & Co. has completed a bridging loan worth €11.1m on two chalets and land with planning in a mountain resort in France.

The client was introduced to Arc & Co’s CEO Andrew Robinson via a wealth manager.

Robinson (pictured) first worked with the borrower a year ago on a bridging loan to secure the land surrounding the chalets. Since then, planning has been achieved, and the land has now been valued at £28m—ready to be sold for development into a hotel.

Robinson looked for a lender to refinance the existing bridge, therefore allowing the borrower time to sell. The lender was required to consider the independent value of both of the chalets as well as the land with planning.

Robinson said: “This was one of the more difficult points to cover as not many lenders in the location would look at both values. We had a 75% day-one on the current residential usage but combined with the residual land value of the hotel, the LTV came down to 40%.”

Specialist bridging lender Brydg was selected as they have the requisite local market knowledge and capabilities to understand the structure—which was imperative to get the deal closed. The client had changed the structure from a Luxembourg holding company to a French SCI which added complexity during underwriting.

ADDED COMFORT

In addition, Robinson negotiated for Brydg to have a ‘golden’ share in the French SCI to enhance their security on the loan structure.

The €11.1m loan was completed in six weeks from signing and was priced at 1% pcm.

Robinson added: “Due to the valuation, structure, and location, there were not many lenders that would consider this deal—it was very specialised.

“The French legal system is complicated, and it was a challenge working with a raft of lawyers and notaries. Communication was key, so all-parties calls had to be held at least weekly so we could manage the process to completion.

“Our experience and in-depth lender relationships means that we can step in and assist with international cases, providing the necessary case management to keep all aspects moving.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

First-time buyer mortgage activity outpaces home mover market

First-time buyer mortgage applications have outpaced the wider housing market in the second quarter...

HSBC revises mortgage ranges and fixed rate terms

HSBC is making extensive updates to its residential and international mortgage product ranges, with...

Santander cuts remortgage rates

Santander UK has reduced interest rates on all of its 60–75% loan-to-value (LTV) remortgage...

Cavendish unveils new brand to mark 40th anniversary

One of the UK’s longest-standing conveyancing firms has marked its 40th year in business...

The Leeds and L&C streamline applications with open banking pilot

Leeds Building Society and L&C Mortgages have introduced a new automated process that enables...

Latest opinions

Broker proactivity can ease path back to prime

One of the lessons we’ve taken from the ever rising levels of interest in...

We need to look again at two-year swaps…

Over the last 12 months, we’ve seen three notable things happen in the swaps...

How product transfers can help landlords and brokers in a challenging market

In an ever-changing buy-to-let market, the task of managing a property portfolio becomes increasingly...

Finding the ‘yes’ on finance for trading businesses

Pressure on UK trading businesses continues to mount, driven by rising costs, tight cash...

Other news

First-time buyer mortgage activity outpaces home mover market

First-time buyer mortgage applications have outpaced the wider housing market in the second quarter...

HSBC revises mortgage ranges and fixed rate terms

HSBC is making extensive updates to its residential and international mortgage product ranges, with...

Santander cuts remortgage rates

Santander UK has reduced interest rates on all of its 60–75% loan-to-value (LTV) remortgage...