First Time Developer exchanges at Auction with a personal BTL mortgage AIP in hand. Mistakenly things this would suffice and would allow for the client to carry out heavy refurbishments with this lending. She was quickly made aware from her previous broker following the unsuccessful survey that this would not be suitable security and had to source other lending. The client was referred to Coreco specialist finance where we quickly established a this would be a heavy refurbishment bridge and that we needed to adhere to the completion deadline of 28 days ( Over the Christmas period! )
This lease had only 58 years left thus meaning this would not be mortgageable from main stream lenders.
Another hurdle to overcome was the freeholder having served Section 146 notice breaching of the lease. The Client was not aware until they exchanged on the property which left her in a very precarious situation.
We sourced a heavy refurb product with a specialist BTL lender, this bank allowed for 80% NET of the purchase price allowing the client to hold monies back to assist in the added legal costs and buffer for refurbishment.
We assisted the client in providing advise on how to work with the landlord and rescind the section 146 notice allowing for a peaceful transition into the sale of the property with all parties happy.