NAME: Mrs P
LOCATION: Central London County Court
TYPE OF CASE: Expired Bridge Loan – Eviction
Time Available: Contacted us 5 days before the eviction date.
Previous History: Mrs P had previously been under significant financial pressure after a temporary slump in her business, and subsequently took out an unregulated Bridging Loan for 12 months. At the time of taking out the Bridging loan, no consideration was given as to how it would be repaid at the end of the term.
The bridging loan company were typically ruthless in its administration. The main issue being that when their term expires, it results in ‘default interest’ being applied which increases the loan balance incredibly quickly.
In this case, the bridging loan company had allowed the loan to compound for 6 months which subsequently made it impossible to refinance the property onto another mortgage or loan.
Our strategy was to secure Mrs P time to sell her property on the open market place, rather than being made homeless and the bridging loan firm being in control of the sale.
Case Won? Yes
We managed to convince the court to provide 3 months suspension to the Eviction Warrant to enable Mrs P to secure the sale of the property. Mrs P was able to market the property through a local agent and being in a popular area, was able to achieve close to market value, which the Bridging firm, under forced sale conditions would not.
Testimonial of Mrs P
I want to thank everyone on the team for the help and support on my case. I realise now how precarious my position was and that you had my best interest at heart. Your advice and help has enabled me to pull out what security I had left where the Bridging loan company was happy to take it all.
I can’t believe, looking back, how much time I wasted trying to convince the lender to let me stay, so many documents and offers, my only regret is honestly not phoning you sooner.
Cases with Bridging loan companies are typically difficult as the contract is designed to work against you, and the loan on the property is likely to be significantly higher than a normal case where the mortgage is expired meaning there is less equity or security for the Lender.
Convincing the court that you need time to sell the property is not as easy as it sounds. Even being able to demonstrate that your property is on the market is insufficient. The result of the case is entirely at the Judge’s discretion and you really will need expert help to achieve an extension.