Combined adviser effort delivers solution for complex client

At LDN Finance, we often find scenarios arise where clients using our specialist lending department also need residential finance support. We’re proud to offer a holistic service that sees us work across departments to secure the most suitable terms for clients.

For this case study, we see how our Specialist Finance Advisers and Residential Associate Directors worked together to secure the desired amount of funding for a client seeking capital to refurbish and modernise a derelict property.

What was the situation?

The client approached LDN Finance having purchased property which consisted of a house with severe structural issues, and a derelict barn. Both were in need of modernisation and the intention was to obtain planning permission to convert both structures into a holiday home to let out to staycation clients.

Located on the coast, the house is an impressive five bedroom country residence set in around 8.5 acres, with the addition of a two-storey barn, triple garage, indoor swimming pool complex and annexe accommodation. In order to carry out the works, the client was looking for £690,000.

What was the issue?

Although James was able to maximise the borrowing secured on to the purchase, it quickly became apparent that there was not sufficient funding to purchase the property, cover the transactional costs and complete the desired renovation works.

What was the process?

Through thorough factfinding and reviewing the application with a fine tooth comb, the team was able to establish that there were two background buy to let (BTL) properties with low levels of secured borrowing. At this point, it was important for the advisers to work across departments with an established buy-to-let adviser in the team, in order to devise a solution that would allow the client to secure a remortgage on the BTL properties. By doing so, that would release sufficient funds for the clients to continue with the purchase and complete the desired renovations.

The complexity with this application was that several lenders required the client to be an owner-occupier at the time of application. However, we were able to speak directly to the decision-makers and explain that the client would be owner-occupiers on completion of the remortgage, as it was being used to form part of the purchase.

What was the solution?

Using our team’s combined knowledge and experience, the client was able to acquire the new property and seize the opportunity to increase their portfolio.

A 12 month term at under 0.7% per month was agreed as initial bridging financing, allowing enough time for the works to begin before seeking refinancing. For the remortgage’s secured on the buy-to-let properties, we arranged a full interest only, 5-year fixed rate at just over 3%. Both terms were close to market leading at the time, therefore releasing the desired property value.

The client was thrilled at the gents’ combined effort, thankful that the team were able to successfully overcome any problems with common sense solutions.

Lending solutions with LDN Finance

Are you purchase property in need of renovation, but have a complex application that you would like some advice about? We’re here to help you find a solution – no matter how complex your circumstances. At LDN Finance, our expert brokers have extensive experience in providing creative solutions to secure large loans for our clients.

We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates. 

Get in touch with us to organise an initial consultation.