Complex residential & holiday let joint purchase

Complex residential & holiday let joint purchase

Complex residential & holiday let joint purchase

The problem:

Our client needed our help to complete a transaction that involved the purchase of a large rural property, with multiple annexes and a separate holiday let on its own title deed. He planned to sell their existing family home and combine the proceeds of sale from his father’s property to enable a multi-generational living set up. The presence of multiple annexes, and a large gifted deposit from a family member who would be living in the property but not party to the mortgage, necessitated careful selection of lender.

The outcome:

We came devised a solution whereby the client’s property investment company purchased the holiday let on one mortgage and the residential property was purchased through a different lender. This enabled us to maximise the affordability available by using the holiday let income in a discrete transaction, which enabled the client to maximise available funds to put towards other associated costs of moving and establishing a new home.

Large HMO with commercial unit beneath

Large HMO with commercial unit beneath

Large HMO with commercial unit beneath

The problem:

The client had just finished the development of a 10 bed HMO with commercial unit beneath and was now on the look out for the best option to exit on to long term BTL finance. He had considered whether to split the title and have two loans and was not sure which would be the cheapest from an ongoing debt servicing perspective.

The outcome:

Whilst we couldn’t advise on the legal aspects of splitting the title, we were able to illustrate how the different options might stack up. Either through taking one mixed-use commercial investment loan across the whole building, or by taking a small commercial loan, alongside a larger BTL loan for the HMO. Ultimately, we were able to secure a single mixed-use loan at a rate which made it not worthwhile in splitting the title, thus saving the client the hassle, expense and time of that extra legal work.

Timber Frame Development for high-end holiday let

Timber Frame Development for high-end holiday let

Timber Frame Development for high-end holiday let

The problem:

A professional developer, with bags of experience, looking to erect two high-end rental properties near the coast. The construction method was entirely timber frame which creates an issue as a high number of lenders will not accept buildings of that type as security. We needed to plan a route through for development funding, and then the exit on to long term finance.

The outcome:

The development lend was the easier of the two types of lending to arrange. Despite several development lenders not being keen on the construction method, we identified a lender that was competitive to the market in terms of rates and also very flexible around the staging of initial drawdown and were happy come in towards the end of the project if required as the developer had good sized cash reserves.

The exit on to term finance was trickier but we have identified several lenders that would be open to the construction method and from those we can drill down to make the best choice based around valuation methodology. E.g. How many weeks of holiday let income will each lender consider as income to support affordability.

Funds to finish development

Funds to finish development

Funds to finish development

The problem:

Our client had reached the final stages of a new build development and been let down at the last minute by another lender. With suppliers to pay and other debt to satisfy he found himself in real need of a lender that could move quickly to step in and fill the gap. To complicate matters, there were some sticky issues around planning consents that raised numerous questions during the underwriting process.

The outcome:

Working with a bridging lender who we know to be pragmatic and focused on getting deals done, we managed to move from application to drawdown, via some tricky legal wrangling on the planning issues, within 4 weeks. We supported the borrower through the entire process, ironing out each issue as it arose and bridging the gap between lender, solicitor, surveyor and borrower so he could get to the funding he needed ASAP.

Residential property adjacent to a Zoo

Residential property adjacent to a Zoo

Residential property adjacent to a Zoo

The problem:

Our client had purchased a rural property to live in which came with a large parcel of land next door. Over a number of years he developed that land into a thriving zoo business. Unfortunately, when the time came to remortgage at the end of his deal, he found that no mainstream lenders would lend against the house because of the proximity of the zoo.

The outcome:

This one almost stumped us! Even a number of specialist lenders refused to lend but we persevered, and, through our extensive network of lenders, we identified a bank that would be willing to lend.

The lender in question takes a very bespoke approach to underwriting and really drills down into the specifics of each case. That enabled them to fully understand the customer and the risk and established a relationship which may well over time develop to include a commercial lending proposition, enabling the customer to keep all their borrowing requirements under one roof. A win-win!