What was the situation?
We were approached by one of our clients looking to increase their residential portfolio.
What was the issue?
When the client received the valuation report for the property they wished to purchase, it was deemed un-mortgageable as the property required complete modernisation. The client had already exchanged contracts by this point, and was concerned they could lose their 10% deposit lodged with his solicitor and therefore urgently needed to complete.
What was the process?
We suggested that they take out a short-term facility to carry out the refurbishment uplift. We facilitated them in borrowing 75% of the purchase price before converting to a buy to let (BTL) mortgage.
What was the solution?
We secured the client a short-term facility for 75% on a six-month term, which enabled them to secure the asset, carry out the refurbishment requirements to allow them to exit to a term solution.
The client was extremely grateful and happy that we could solve the dilemma in such a short space of time and once completed, move them to a solution to repay the facility, once refurbished, on more favourable terms.