The Client: A first-time landlord, our client had a high-income which he wished to invest in property. He’d set up a limited company with which to purchase buy to let property.
The Property: In need of a lot of cosmetic refurbishment, the two-bedroom bungalow was situated in a suburban area in the West of England. The client planned to refurbish the property to a high standard, and with excellent transport links to the nearby city centre, it would present as an ideal rental property.
The Finance: Due to the property’s condition, the client could not secure a buy to let mortgage for the purchase of the property. Consequently, he had to buy the property with bridging finance to allow him to do the refurbishment works. Once the refurbishment was complete, he wished to pay off the bridging finance by refinancing onto a buy to let mortgage and raise capital out of the new, uplifted value for further investments.
The Challenge: Eager to exit the bridging finance arrangement, which is often more expensive than term mortgages, time was a primary factor in this case. However, the ongoing pandemic impacted lender service times and meant valuations could not be booked in as quickly as usual. We needed to find a lender who would be able to move quickly and do everything we could to make sure the application moved along in a timely manner for our client.
Pandemic aside, despite his high-income, our client was a first-time landlord, which would exclude him from several buy to let lenders. Therefore, we’d have a smaller selection of lenders to choose from for our client.
The Solution: We constantly monitor lender service times which allows us to quickly identify which are suitable to use for more time pressured cases. Using this knowledge, we sourced a small selection of buy to let and bridging lenders which would accept our first-time landlord client and process the application quickly.
We were able to place this with a lender who would do both parts of the finance for us – they would initially bridge it, allowing the client to improve the property, and then they would refinance it off of the bridge as soon as the property was mortgageable under standard terms, giving minimal additional fees to the client as the lender already had the property as their security. Due to this, the buy to let remortgage was offered in a little over a month and moved quickly through to completion, much to the client’s delight.
Broker: Narinder Gill, 07496 308 358, firstname.lastname@example.org
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