Three-way transaction to secure dream home

What was the situation?

Our clients were looking to purchase a substantially larger new ‘dream’ residential home. Although they had previously been outbid on the property, fortunately for them, their competitors’ purchase had fallen through. They approached us after being offered the chance to buy the property at their original bid price if they could move quickly so the chain did not fall apart.

What was the issue?

We established the maximum loan range achievable based on their income structures (self-employed contractor) and the available funds for deposit. Unfortunately, this was not enough to meet the purchase price. They intended to release equity by selling their current home which had been on the market for a while, and with no suitors enquiring, a quick sale seemed unlikely.

What was the process?

Given the time pressure and inability to release funds through the sale of their current property, we had to look for a more creative solution. We looked at a buy to let remortgage, which would mean they would turn their current home into a buy to let. We could then use the anticipated rental income towards the affordability on the new mortgage.

Alongside this, the client also had an existing buy to let property which we were able to remortgage to release more funds.

What was the solution?

This three-way transaction allowed us to simultaneously release enough funds required for the deposit and stamp duty, whilst applying for the purchase mortgage with a separate lender. In the end, the clients purchased their dream home they had been competing for which was previously out of reach.

Secure your ideal property with the help of LDN Finance

Are you finding barriers in the way to securing your dream home, or another ideal property? Our friendly professionals are on hand to provide hassle-free advice and creative solutions for your mortgage purchase. Get in touch with us today to organise an initial consultation.