Suros Capital, the alternative security short-term lender, has provided a £66,000 loan to a property developer secured against his Porsche 911.
The developer bought a property at auction but had used the funds originally put aside on another property development. Being unable to source the funds he needed to fund the work on the new property so the development could be completed on time, his mortgage broker suggested approaching Suros Capital and seeing whether they would lend against his Porsche 911 sports car.
Having assessed and valued the car, Suros was able to release £66,000 (60% LTV) to the client. From first enquiry to funds drawdown took 72 hours. The rate of interest was 3% pm.
The funds will be repaid to Suros from the profit gained from the imminent sale of another recently developed property.
The intermediary earned 2.5% of the loan value.
Ray Palmer, director of Suros Capital, said: “I think this deal demonstrates beyond doubt the value to bridging advisers of having a funding source not tied to a set formula of processing checks and balances but can simply assess luxury items, like this Porsche, and offer funding pretty well instantly.”