The deal was put in place in ten days.
Bridging lender Fiduciam has completed a £1m deal on two properties in South West London.
The borrower, a building contractor looking to expand into property development, initially approached Fiduciam for a 65% first-charge loan to fund the purchase and refurbishment of a property in Battersea, with a market value of £1.3m.
As the deal was nearing completion, Fiduciam learned that the applicant had a cash shortfall of around £100,000.
To ensure the deal could progress at pace, Fiduciam arranged a valuation on another property owned by the applicant, in nearby Sutton.
Valuing the Sutton property at £1.5m, Fiduciam offered a 54% LTV second-charge loan, enabling the applicant to cover the shortfall.
This was put in place in ten days and the deal was able to go ahead, with the borrower securing a total loan of £950,000 over 12 months, at a rate of 0.80% per month.
Johan Groothaert, chief executive at Fiduciam (pictured), said: “The London property market has gone through a major correction, and we believe that right now a lot of bad news has been priced in.
"London is an international business centre, which means many real estate buyers come from overseas, and therefore it is important to also consider the effective exchange rate of pound sterling, which is down nearly 20% since the end of 2015.
“The cumulative effect of London real estate market correction and the depreciation of pound sterling means that London real estate is now attractively priced in comparison with other international business centres.
"With the election bringing an end to a period of political instability, we believe that the upside potential now clearly exceeds the downside risk.
"For that reason, we wish to increase our loan book exposure to the London market.”
Ryan Parrett, business development manager for Fiduciam, added: “Demand for borrowing against property in London and the South East shows signs of increasing again, the lower prices are bringing developers back to the capital and we expect them to increase in number over the next year.
"While there are many lenders that will do standard short and long term loans, Fiduciam is perfectly placed to help those whose requirements are more complex and who need a lender who has the experience to think more creatively.”