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.
Lending solutions with LDN Finance
Are you purchasing property for the first time? 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.