Holiday Let Refurbishment Loan for a Property with a Complex Legal Title

Deal Structure

• 50% Loan to Value (LTV)
• Interest rate: 1.2% per month (rolled up)
• 2% arrangement fee
• 1% exit fee (based on the facility amount)
• No Quantity Surveyor (QS) fees

Deal Summary

A new client approached us after being told by another lender that their property was “un-mortgageable”. They had already contacted several brokers and lenders but had been unable to secure funding before coming to Positive Commercial Finance.

The property had been inherited from the client’s parents and sat next to another property inherited by their brother. The previous owner had placed several restrictions on the property’s legal title. As a result, many lenders were unwilling to lend because they could not obtain what they considered to be a clean and marketable title.

Rather than dismissing the case, we assessed the circumstances and identified specialist bridging finance lenders willing to take a commercial approach. Because the borrowing was at a conservative 50% Loan to Value, we were able to structure a holiday let refurbishment loan that met both the client’s needs and the lender’s requirements.

The agreed solution allowed the title issues to be resolved during the loan term while the property was being refurbished. Once the legal restrictions had been addressed and the works completed, the client planned to refinance onto a longer-term Buy to Let mortgage.

As a qualified carpenter, the client carried out the refurbishment themselves, transforming the inherited property into a high-quality holiday let in a beautiful coastal location in Wales.

The client was delighted to secure funding after previously being told the case was a “non-starter”. By working with specialist lenders and taking a pragmatic approach, we delivered a solution where others had been unable to help.

If you own a property with a complex or unusual legal title, don’t assume finance isn’t available. We work with specialist lenders who regularly consider cases that many high street lenders decline, helping clients secure funding for refurbishment projects, holiday lets and other property investments.