Prime London 2nd Charge Successfully Negotiated With Sharia Law Bank

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On a prime central London property, a second charge loan - sitting behind a Sharia Law bank first charge - was needed to allow the client to acquire the freehold.

A High Net Worth borrower required additional finance to cover professional fees and raise extra cash to buy the freehold of a prime London address from the landlord.

The prestigious townhouse had been owned by the borrower for many years. His development strategy was to convert the existing split of the property into a single dwelling, thereby improving its Gross Development Value.

Tuscan Capital negotiated a complex inter-creditor deed with the first mortgagee - Qatar Islamic Bank - taking a second charge to 70% of the current value of the building.

Broker Comment...

John Kerrigan (Arc & Co) said: “The Tuscan Capital team surprised me by managing successfully to negotiate an inter-creditor agreement with a Sharia Law bank. They then got comfortable with making the loan to help the borrower enhance the value of the property by assessing the current position while mindful of the enhanced value after the borrower completed the freehold purchase and reconfiguration.”

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