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TVAF
7 West Mills Yard, Newbury,
Berkshire, RG14 5LP
Following an introduction from a local Accountancy practice, we were asked if we could assist one of their clients (a property landlord with an extensive HMO portfolio) with the restructuring of a COVID legacy loan.
During the pandemic, the customer had taken out a large short-term loan to provide the business with valuable working capital during lockdown. That loan had been secured against the directors’ principal private residence by way of a second legal charge (one which sits behind the mortgage company). The incumbent lender had structured the loan on an interest only basis, with all of the capital deferred.
Whilst the customer had met all the repayments in a timely manner, the lender now wanted full repayment of the loan, principally due to a change in their lending policy, coupled with the fact they were no longer happy to have the customer use his matrimonial home as the security for the loan. They wished to retain the customer but wanted different property as the security, something that the Director was not wanting to offer
Whist the financials for the business were complicated, in part due to a complex trading structure and multiple trading entities, the TVAF team were swiftly able to source a replacement lender. Furthermore, a secured business loan provider who was quite willing to extend the new loan term to seven years, therefore allowing the customer to meet both capital and interest repayments at broadly the same cost as he was currently servicing.
Working with the client, his accountant, the new business finance lender, and all interested parties legal teams, we were able to secure a £300,000 loan. This allowed the existing lender to be repaid in full, whilst also giving the borrower a small amount of additional cash for new projects.
Contact us to find out more about our ability to arrange both secured and unsecured business loans.