What was the situation?
I was recently approached by a married couple – both of whom worked within the finance industry – who were looking to purchase a new residential home on the South East coast that required serious refurbishment works to meet the criteria of standard mortgage lenders.
As the property was deemed ‘uninhabitable’ this called for immediate works to be carried out. Namely, suitable kitchen and bathroom facilities would have to be fitted before the couple would be able to refinance with a standard mortgage lender.
My clients were looking to borrow 65% loan to value (LTV) to complete the purchase and complete the necessary renovations.
What was the issue?
The main challenge with this case was that a regulated solution was required in order to get the deal across the line. As the clients were looking to reside at the address, I needed to source a lender that offered regulated bridging loans and could also cater for structural works to take place.
Not only this but, during the loan application, the buyers of my clients’ existing home pulled out, leaving them with an unexpected shortfall in funds.
What was the process?
Firstly, in order to navigate the complication of my clients’ property sale having fallen through, I quickly realised we would have to increase the level of borrowing in order to cover the shortfall in funds, securing the loan over both properties, new and old.
Leveraging my extensive knowledge of the industry, I was able to work quickly and efficiently, only contacting lenders I knew were likely to accept the quirks of the deal, rather than wasting time having to send enquiries out to a huge selection of lenders.
After gathering all relevant information, I was able to present the case in a favourable light to my lender network and secured three options for my clients to explore.
Securing a regulated bridging loan at this LTV which also allows for structural works is a challenging task to say the least. However, due to our fantastic relationships with our trusted lender panel at LDN Finance, I was able to converse directly with the chosen lender’s underwriting team and secure a bespoke facility that catered perfectly to my clients’ circumstances.
What was the solution?
The end solution was a regulated bridging loan which allowed for the necessary structural works to be carried out. The facility was agreed at a borrowing of 65% LTV, secured across both habitable and uninhabitable properties, at a favourable rate.
Not only did this mean my clients could proceed with the purchase of their dream home, but they could also carry out all the work required on their new home to make it both habitable and increase its value. When the sale on their now old home is eventually completed, the next step for my clients’ will be to refinance the outstanding debt onto a regular residential mortgage.
My clients were incredibly grateful with the speed and thoroughness of the process and were thrilled to be able to purchase the home they’d set their eyes on despite running into complications when the purchase chain had broken behind them.
Lending solutions with LDN Finance
Have you found a property that has the potential to be your dream home with a bit of TLC? A regulated bridging loan could be the answer.
At LDN Finance, our expert team has a wealth of experience in securing short-term finance solutions suited to your circumstances, working closely with our trusted network of private banks and specialist lenders to formulate bespoke arrangements at competitive, market-leading rates. Get in touch with us to organise an initial consultation.