“Our client was under pressure to refinance quickly but maintain their mezzanine structure. Momenta Finance impressed us with how rapidly they structured a comprehensive solution, enabling seamless refinancing and funding for works continuation.” – Jenna O’Sullivan of Henray Capital.
Swift Development Loan Refinancing with Complex Security Structure
Late July saw one of our trusted introducers approach Momenta Finance. They needed to provide a fast and effective finance solution for their client. The client faced an approaching redemption date on an existing loan with another lender. Moreover, they required additional funds to complete their ongoing development project. An existing mezzanine loan was also in place.
The Opportunity
The client needed to refinance an existing loan and secure additional capital for the remaining works. The challenge was to structure a solution swiftly without disrupting the existing mezzanine finance, while satisfying the previous lender’s timeline.
Momenta Finance’s Solution
Momenta Finance worked closely with the introducer and client. They structured a development bridging facility that addressed both the immediate redemption requirement and the ongoing funding needs for the project’s completion. A bespoke finance solution was structured to repay the existing lender in full. Additionally, it provided the necessary capital to complete the remaining development works. The loan included provisions to retain the client’s existing mezzanine facility. This was successfully subordinated as a second charge behind Momenta Finance’s new first charge. Legal and due diligence processes were completed within just four weeks. This allowed the transaction to complete in time to satisfy the outgoing lender’s deadline. Consequently, the client could proceed uninterrupted with the next phase of development.
Loan Type: Development Bridging
Loan Amount: £2,600,000
Loan Term: 12 months
The Outcome
The refinancing allowed the client to meet obligations to their existing lender on time. Also, it enabled them to continue progressing their development project without interruption. Maintaining the mezzanine loan alongside the new facility ensured financial continuity and flexibility. This deal highlights Momenta Finance’s expertise in structuring complex property development finance. It is delivered with speed and precision.
The Introducer’s Perspective
“Our client was under pressure to refinance quickly but maintain their mezzanine structure. Momenta Finance impressed us with how rapidly they structured a comprehensive solution, enabling seamless refinancing and funding for works continuation.”
– Jenna O’Sullivan of Henray Capital.
Simon Michael, Senior Property BDM, Momenta Finance, concluded:
“This development refinance project exemplifies our commitment. We provide tailored financing solutions that meet urgent client needs amid complex capital arrangements. We work closely with brokers and clients to deliver swift, strategic funding. This keeps projects on track and unlocks growth.”
