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Archive for the ‘Case Studies’ Category

7 Bed HMO Mortgage for a First Time Landlord

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The Issue – A first-time landlord with a 7 bed HMO was told by a specialist HMO broker they were not mortgageable due to lack of experience. They had a property worth £400,000 wihich they wanted to remortgage at 75% LTV.

The Solution – We have access to a lender who will do HMO mortgages up to 8 beds for a new landlord at competitive rates. The previous broker thought their maximum was 6, so through our knowledge, we have a happy landlord who has now moved onto her next property.

Not rocket science but by understanding the market we know where to go and who to avoid.

£300,000 Refinance of New Build Flats

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A Cheshire based company had built four apartments with a total land and build cost of £200,000 and the properties were valued at £440,000.

Lenders had been approached by our clients and all were either not interested as they were property developers, or wanted them to leave some of their money in the project so they only had had access to a loan of £180,000.

By getting to know their medium and long-term strategy we presented this to a specialist property lender. By outlining their plans the lender was satisfied that the company had a long-term viable plan which they wanted to support and offered 75% of the value to them. So we have two happy directors who now have an extra £150,000 to go towards their next project.

£500,000 Residential Development Finance

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An experienced developer had been declined by their bank as they felt they were doing too many developments (this was the third!) so refused to lend. Based on the previous track record and their professional team a loan of 100% of build costs and fees was agreed with a specialist property lender. Don’t always take no for an answer!

 

Case Study: Short Term Loan for Addition of another BTL to Portfolio

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Shawbrook is pleased to report the completion of a short-term loan at 55% LTV, for a client of Strategic Partner ‘Searchlight Finance’. The purpose of the loan was to raise funds for the purchase of another investment property, with the client having very recently transferred ownership of a buy-to-let (BTL) property from their individual name to a limited company via a special purpose vehicle (SPV).

Shawbrook has completed on loans for a number of clients in a similar position, establishing an internal support framework which can process SPV transactions as efficiently as possible. In this case, the broker’s client already had another loan with Shawbrook, enabling them to benefit from the Existing Customer Discount and expediting the application process for all parties.

The client was initially unable to provide the shareholding structure of the new SPV to the Bank, because they were awaiting the appropriate security codes from Companies House in order to update their annual return documents. As Searchlight’s client was known to the Bank, Shawbrook was able to take a pragmatic view and issue the IMO without this information, making it a pre-completion requirement instead.

There were some initial discrepancies concerning the property title plan, whereby the documentation provided seemed to indicate the footprint of buildings previously on site and not forming the boundaries of the newly built development. This created difficulties for our legal partners at Pure Law in terms of finalising a definitive boundary plan, but these were overcome by the efforts of both the Shawbrook lending teams and Searchlight Finance.

With open communication channels ensuring all outstanding information was shared as needed, the Shawbrook lending teams were able to move to completion to the satisfaction of the client.

The broker, Simon Allen from Searchlight Finance, commented:

“My client was pleased with the outcome of their application process with Shawbrook and, as a repeat customer, is open to seeking finance from Shawbrook again in the future.

“From a broker’s standpoint, the interaction with Shawbrook lending teams was as Searchlight Finance has come to expect – expert, pragmatic and always able to take an informed view throughout the lending process.”

£300,000 refinance of New Build Flats

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A Cheshire based company had built four apartments with a total land and build cost of £200,000 and the properties were valued at £440,000.

Lenders had been approached by our clients and all were either not interested as they were property developers, or wanted them to leave some of their money in the project so they only had had access to a maximum loan of £180,000.

By getting to know their medium and long term strategy we presented this to a specialist property lender. By outlining their plans the lender was satisfied that the company had a long term viable plan which they wanted to support and offered 75% of the value to them.

So we have two happy directors who now have an extra £150,000 to go towards their next project.

Searchlight Finance Limited is registered in England and Wales No.07929050 Searchlight Finance Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (http://www.fca.org.uk/register) under reference 743220. The FCA do not regulate Business Buy to Let Mortgages or most Commercial Mortgages and Bridging Finance. ICO Number Z3109319. Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.

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