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Today, independent mortgage broker Private Finance has said that homebuyers applying for a mortgage on an unusual property are now more likely to be approved in today’s market but still need the benefit of specialist guidance.
The broker has said that approximately 8 out of 10 of these applicants have been previously rejected for a loan on an unusual property by their high street lender. However, with independent advice from experts at Private Finance they were able to source specialist facilities to support the purchase of properties such as barn conversions from a wide range of regional building societies.
Similarly, Private Finance recently arranged the finance to purchase a residential property that had been used primarily for student accommodation. The applicant had been rejected by a high street lender on the basis that the property had self-contained units making it possible to re-let. However, Private Finance was subsequently able to secure the loan through a lender who agreed to lend on a prime residential basis.
Simon Checkley, Managing Director of Private Finance says:
‘This was an especially unusual case as all the rooms in the property had locks on the doors and there was a self-contained element with separate access as well as a separate kitchenette on the third floor. Many high street lenders will not accept applications like this due to the potential for the property to be re-let to students and/or private tenants.’
‘However, through our discussions with some of the lender’s senior underwriters we were able to get the property agreed without any further issues on a prime residential basis. With access to the underwriter we were also able to provide evidence that the client was genuine by supplying supporting information on their underlying motives for the move as well as a formal letter of intent to satisfy the lender’s criteria.’
Tom Goodley, Associate Partner at Strutt & Parker added:
‘We have no shortage of enquiries from clients looking to purchase unusual properties. These properties include old school houses, churches, properties in multiple occupation being converted to single dwellings and an increasing number of barn conversions. We’ve sold a number of barn conversions recently and whilst lenders are happy to supply finance for the finished article, for barns which are yet to be converted, the use of a specialist broker, such as Private Finance, is invaluable for buyers in order to obtain the right finance package for them.’