What was the situation?
The client – a first time investor – approached me looking to purchase their first investment property at auction. Located along the south coast, the property was in very poor condition and in desperate need of renovation. The client wanted £250,000 to undertake the renovations.
What was the issue?
The difficulty in this application was the client required leverage of 80% net loan to value of the purchase price in order to complete on the transaction. The client then also wanted the full cost of works funded (100%).
Additionally, the property was being sold through auction so the client needed funds quickly. This was a priority for the client as they had recently sold their residential property to help fund the purchase.
What was the process?
In order to secure the necessary leverage, I had to use my BDM relationships to explain this case in more detail one-on-one. By leaning on our relationship, I was able to push the application through to the credit committee quickly, in good time for the auction.
By taking a common-sense approach to this case, the lender agreed to the 80% leverage required. Keeping all parties engaged and up to date was the key to success with this case. To make the deal even more compelling for the client, I was able to negotiate with the lender to agree to a lower ‘minimum draw down amount’ due to tight cashflow/funding.
What was the solution?
The client was delighted to receive exactly what they needed – 80% net day 1 plus full cost of works, at a competitive interest rate considering the current market.