Administrators have begun marketing more than 250 property companies holding prime central London homes following the collapse of bridging lender Market Financial Solutions, with an estimated £1.3 billion shortfall facing creditors.
FRP Advisory and Begbies Traynor have been appointed to handle the sale of companies linked to individuals with connections to the £2 billion shadow bank, which entered administration last month amid allegations that some assets may have been pledged multiple times to secure loans.
The companies hold ownership of luxury flats in some of London’s most expensive postcodes, including Mayfair, Belgravia, Kensington, Knightsbridge, Fitzrovia, Marylebone and Nine Elms. Properties range from traditional stuccoed residences on Berkeley Street, Grosvenor Square and Portland Place to modern high-end apartments.
Scale of the sell-off
Companies House records show that ownership of the residences is tied to 134 Buckingham Palace Road – the former address of MFS prior to its administration. Three directors – Khemanand Hurhangee, Dipeshkumar Patel and Dipendra Amin – are listed for these companies, which had borrowed from MFS. Court filings indicate these individuals have connections to Paresh Raja, co-founder of MFS.
This follows Landlord Knowledge’s February report on the MFS administration, which detailed allegations described by a judge as “very serious” including claims that assets were double pledged to secure loans.
A spokesperson for FRP Advisory confirmed that administrators have been appointed to manage the sale of roughly 250 companies associated with MFS. Creditors will look to proceeds from these property sales to help recover part of the estimated £1.3 billion shortfall.
Market impact
The sale comes as prime central London values remain under pressure. Recent data has shown central London property values down 12 percent over the past decade as stamp duty surcharges and other tax changes weigh on investor demand.
MFS was part of a growing sector of UK bridging lenders, providing short-term, property-backed loans to borrowers who might not qualify for traditional bank financing. To support its expansion, MFS borrowed more than £2 billion from major financial institutions including Barclays, Wells Fargo, Jefferies and Santander. Its clients included property investors, overseas family offices, and high-profile individuals.
What this means for landlords
- Prime London supply: More than 250 luxury properties entering the market could affect pricing in top-end postcodes – watch for buying opportunities.
- Bridging lender risk: The collapse highlights counterparty risk when using non-bank finance – check your lender’s financial stability and regulatory status.
- Due diligence: Properties sold by administrators may come with complications – ensure legal checks cover any potential title or charge issues.
- Bottom line: For investors with cash or secured finance, distressed sales can offer value – but only with thorough due diligence.
Editor’s view
The scale of the MFS unwind will test prime London’s ability to absorb supply. While 250-plus properties spread across multiple postcodes may not flood any single market, the concentration in high-value areas could create pockets of softness. For landlords considering bridging finance, this collapse is a warning to scrutinise lenders as carefully as they would scrutinise tenants.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 19 March 2026
Sources: FRP Advisory, Companies House
Related reading: Bridging lender MFS enters administration over banking dispute
