A Challenging Auction Purchase Turned Success Story
In August last year, we were approached by a client looking to finance the purchase of a multi-unit freehold block in South Wales. The property, containing 14 fully let units, was being acquired through an auction with a 56-day completion deadline. However, instead of opting for a bridging loan, the client preferred a long-term mortgage solution due to the extended completion timeframe.
The Challenges We Faced
From the outset, the transaction presented multiple complexities:
- Unique Security: The property type ruled out most standard lenders, requiring us to find a specialist lender comfortable with multi-unit freehold blocks.
- Purchase Structure: Rather than a traditional property transaction, the client was acquiring the asset via a share purchase agreement, further limiting lender options.
- Tight Deadline: With a strict 56-day completion period, time was of the essence.
The Solution: Castle Trust’s Swift and Flexible Approach
After carefully assessing the lending market, we identified Castle Trust as the ideal lender. From the very beginning, they demonstrated efficiency, speed, and the ability to offer excellent terms at 75% Loan-to-Value (LTV).
As completion day neared, challenges emerged. Despite our best efforts, obtaining essential information from the vendor and their solicitors became increasingly difficult. Eventually, we discovered the property had been repossessed, meaning the vendors could no longer proceed with the sale. At this point, it seemed like the deal was dead, and the client faced significant losses in third-party fees.
Turning a Dead Deal into a New Opportunity
Rather than walking away, we pivoted our approach. We engaged directly with the lender who had repossessed the property and, after extensive negotiations, managed to structure a new purchase agreement. However, this meant a fundamental shift in the deal structure—from a share purchase back to a traditional property transaction. As a result, a new company had to be formed to facilitate the acquisition.
With only two weeks remaining before the valuation and mortgage application expired, we faced a race against time to get the deal over the line.
A Collaborative Effort to Get the Deal Completed
The success of this transaction would not have been possible without the dedication and expertise of the professionals involved:
- Jayshree Patel (NWL Solicitors) & Isabelle Darvall (Paris Smith Solicitors) – Their meticulous attention to detail, seamless communication, and unwavering commitment played a pivotal role in overcoming the transaction’s hurdles.
- Castle Trust Completion Team – Special thanks to Lee Harron and Nathan Thorne, whose responsiveness and proactive approach ensured that the deal moved forward smoothly.
Despite the intense pressure and unexpected obstacles, the combined efforts of everyone involved led to a successful completion, marking our first (but certainly not last) completion with Castle Trust.
Conclusion
This case study exemplifies the importance of adaptability, persistence, and collaboration in property finance. Through our proactive approach and strong relationships with key lenders and solicitors, we transformed what seemed like a lost deal into a successful transaction. We look forward to many more successful deals in the future and to working again with the fantastic professionals who made this one possible.
