£1 million bridging finance to stop chain collapse

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Proposition

Our client owned a property comprising three separate units on one legal title, consisting of a main house, a smaller house and a studio, with a total value of £1.95 million, with £970k of outstanding debt secured against the property. The client proceeded to exchange contracts on one of these units, however unbeknownst to him (and his solicitor!) the lender held security against the whole legal title and therefore the client could not sell the unit they had exchanged on.

This case therefore presented major issues:

  1. The client needed a resolution found extremely quickly so that they would be able to pay off existing debt, split the titles and complete the sale having already exchanged contracts.
  2. The clients are a retired couple in their mid-70’s and had pertinently also missed payments on their existing mortgage due to the main earner having been made redundant earlier in the year, adding further complexity to the situation and further reducing their options.
  3. The lender needed to be able to accept the fact the client was planning on splitting up the legal title upon completion.
Solution & Lending Facility

On this occasion, our consultant arranged bridging finance at the highly competitive monthly rate of 0.55% for a £1 million loan, so that the client could repay the existing loan on the property and subsequently proceed to complete the original sale, which was very much under threat of collapse, and sell off further individual units when ready.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

© Private Finance Limited, 2020. Private Finance provides independent mortgage advice and arranges individual mortgage solutions for clients. Private Finance is a trading style of Private Finance Ltd, 29 Lincolns Inn Fields, London, WC2A 3EG, registered in England no. 3855776 and its Appointed Representatives. Private Finance Limited is authorised and regulated by the Financial Conduct Authority (FCA registration number 310566).

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