Using lender relationships to overturn a decline on a first time buyer purchase
What was the situation?
I was approached by a couple looking to purchase their first home. The property, a spacious flat, was situated within a converted 3-storey house split into flats.
The flat itself was a leasehold property, however the clients wanted to purchase the freehold of the block with the transaction which was offered as part of the purchase.
What was the issue?
The main issue with this property is that the purchase included the freehold of the block which most lenders would not consider due to concerns over this set up. In addition, the clients wanted to own the freehold in their personal name and not a limited company which was a further issue for some lenders who were OK with the principle of owning both the freehold and leasehold.
What was the process?
In order to find a lender who was willing to get comfortable with the whole purchase, I needed to lean on our relationship managers at various lenders to discuss the application in person. Following these conversations with different lenders, one in particular advised that they could consider the application, subject to surveyors comments.
However following the underwriting process, the application was declined due to the freehold being purchased, which would therefore cause the property to be classed as a freehold flat.
What was the solution?
Frustratingly, this was previously agreed and actually fitted within the lenders policy. I therefore pushed back on this with the assistance of our relationship manager. As a result the application went to higher management within the lender. It was reviewed and then accepted as it did fit within policy. With this final ok, the case went to offer. Without the strength of our relationships with this lender, the clients would not have been able to purchase this property.
The clients were so happy that they were able to complete on their dream property. They advised that they would not have been able to buy this property without our help and lender connections.
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As a returning customer, I would like to express my sincere thanks to the team for their outstanding support during the completion of my property purchase. In particular, Catherine and Darren have been incredibly helpful throughout the process. Their communication, professionalism, and customer service have been absolutely excellent, making the entire experience smooth and reassuring. Many thanks again for all your hard work.
My fiancée and I were recommended to LDN Finance when we started our mortgage journey, and the service we have received, and continue to receive, has been outstanding throughout. Phil Levesley initially looked after us and made what can be a very daunting process feel straightforward and easy to understand. He took the time to explain everything clearly, never rushed us, and was always happy to answer any questions we had. Nothing ever felt like too much trouble. As part of the process, we also wanted to explore a number of protection policies, and Phil introduced us to his colleague,
Owen was absolutely amazing and supported me every step of the way throughout the mortgage process. He was always clear, patient, and incredibly reassuring, making what could have been a stressful experience feel smooth and manageable. Bharathy was also really helpful, promptly getting in touch and making sure all the relevant information was handled efficiently. I couldn’t be happier with the service and would highly recommend them both. Five stars without hesitation.
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