We provided a residential bridging loan to a property company director whose personal residence was partially owned in a corporate vehicle and occupied by her under an Assured Shorthold Tenancy. The purchase by the corporate had been financed by a challenger bank.
For personal reasons the remainder of the shares in the corporate were transferred to the director which breached the terms of the bank loan because of the change of control. As a result of the breach, the lender appointed a receiver and we provided funds to repay the bank loan before the property could be repossessed.
Despite issues including the involvement of the receiver, time constraints and a corporate structure, we were able to complete the refinancing in time to avoid the sale.