What was the situation?
The client approached us needing to quickly refinance an existing Buy to Let (BTL) property to release equity for a commercial purchase.
What was the issue?
The client was unable to obtain a BTL mortgage primarily due to the Energy Performance Certificate rating not meeting the minimum requirements for lawful letting. The commercial property being purchased by the client had been down valued by the surveyor and the client therefore needed to increase their deposit. The client had a set exchange and completion date for the commercial purchase, so the refinance needed to complete swiftly.
What was the process?
We sourced a lender with whom we have strong relations with and presented them with the client’s situation. We submitted a fully packaged application to the lender which enabled them to underwrite the case within 3 working days.
The valuation report on the property was slightly challenging as it contained detrimental comments regarding the property. As we had already pointed out the property flaws to the underwriter at the very beginning, the lender was prepared to take a positive view based on the overall strength of the case and proceeded to a formal offer.
What was the solution?
We worked to produce a short-term loan facility quickly, utilising our strong existing broker/lender relationship to secure a speedy non-standard transaction. This ensured the client did not miss out on the commercial property they wished to purchase.
The client completed on the commercial purchase using the funds we had raised and was extremely happy with the speedy & efficient manner in which we achieved this.
Case study by Colin Anderson, Executive Director