What was the situation?
My client approached me looking to initially buy a property in a limited company name, then transfer the shares of that company onto another person post completion.
Located in London, they were looking to borrow £285,000. The key was to find a lender who was happy to provide a loan to an individual but on completion, transfer it to another entity. Typically lenders would deem this as a new application entirely.
What was the issue?
The main difficulty with this application was that the client found it challenging to find a lender who was happy with the facility being transferred to another person post completion.
What was the process?
Using my extensive knowledge, I was able to approach certain lenders that I thought would consider supporting this structure and future plans, whilst also being able to provide the lending that the client required.
With extensive years of experience in sourcing facilities of a complex nature, I could speak directly to relationship managers who would see potential in the deal, but also identify the risks and provide solutions.
It was important for me to be hands-on throughout the process, from pre-submission to post-completion, ensuring the transfer had been successful. I also made sure I was available to the client outside of hours as the client was overseas often, and therefore in a different time zone.
What was the solution?
I was able to successfully secure the funding required to enable them to purchase the property and transfer the asset to a third party on completion as agreed with the lender. This meant the lender had to assess the third party as part of the application also, so that was very complex.
The facility was agreed with a 12 month term at a competitive rate. Now the client has secured the property, they can move to the next stage of transferring the name over.
The client was pleased with the outcome and appreciated LDN’s tenacity to get the deal over the line.
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