This means that the borrower of the loan has requested an extension to their final repayment date and our underwriters have agreed to that request following a full credit risk assessment. In these cases, while the original repayment date has been extended, the borrower is continuing to pay the required interest payments as normal.
Here are some typical reasons why a borrower may ask for an extension:
- Planning applications have taken longer than expected to obtain.
- Refurbishment works have been unexpectedly delayed.
- The borrower is waiting to exchange on contracts where a sale has been agreed.
- The borrower requires additional funds and/or time to complete his project.
- The borrower is waiting for a new lender to complete their due diligence before refinancing the loan.
- The buyer of the borrower’s property pulls out at the last moment.
We aim to notify investors at the earliest possible time of approved extensions. However, at times, the extension request may be made with very little notice (eg if the borrower’s sale falls through at the last minute).