Refurbishment loan for a Holiday Let with an “un-mortgageable” title
50% Loan to Value
Interest Rate 1.2% per month, rolled up
2% Arrangement Fee
1% exit fee (based on the facility amount)
No QS fees
A new client approached us after being categorically told by another lender that his property was “un-mortgageable”. The client had also tried a few other brokers, without success, before he made his way to us.
The property had been inherited from his parents and was adjacent to another property which his brother had also inherited. The previous owner had put a number of restrictions on the title which resulted in another lender telling him it was un-mortgageable, as lenders would not be able to get “clean” title, and therefore would decline to lend.
We have Bridging Finance funders who are able to take commercial views on such things, and given the Loan to Value was more than comfortable, a deal was structured which would see the title restrictions being tidied up during the course of the loan, so the borrower could refinance to a Buy to Let after the works were completed.
The borrower was a carpenter by trade and will refurbish the property to make a lovely Holiday Let in a stunning part of Wales, by the sea.
Naturally the client was delighted with the outcome, particularly given he was told by the previous intermediaries and lenders he approached that his case was a “non-starter”.
If you find yourself with an unusual or awkward legal title, we work with various specialist lenders with a strong appetite to lend who are willing & able to deal with such matters and fund properties which other lenders will not.