Specialist lender Cohort Capital has agreed a £19m refinancing deal at 70% loan-to-value (LTV) and 9.00% per annum over 18 months on a super-prime mansion in the heart of Mayfair.
The high-net-worth borrower required the funds in a short space of time following unexpected cost overruns on a separate luxury development in Knightsbridge.
The loan was agreed after just two weeks of enquiry.
The Mayfair property is a 9,500 sq ft Edwardian house adjacent to Park Lane that has just completed a £9m refurbishment.
The high inflation environment has been threatening developments across the country. Cohort’s knowledge of the super-prime sector and ability to move quickly allowed the borrower to maintain momentum instead of stalling or cancelling the planned works.
Matt Thame, founder of Cohort Capital, said: “It’s clearly a difficult time for developers, with inflation, higher interest rates, and labour and material shortages all threatening to delay or derail plans.
“Our ability as a specialist lender to provide funding certainty and speed has never been more important, and it’s great to see our client’s project continue uninterrupted as a result.
“However, we expect deal flow to continue at pace in the prime London market given that real estate can be a good hedge against inflation, and thanks to the amount of liquidity in the market, which is only being encouraged by a weakening Pound, increasing interest rates will not deter buyers in the high end markets given the low supply of good quality stock.”
