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:
Solution & Lending Facility
- 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.
- 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.
- The lender needed to be able to accept the fact the client was planning on splitting up the legal title upon completion.
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.