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New build property with purchase restrictions

02.02.18

Adviser: Luke Smith

Value: £329,000

Loan: £289,000

Arrangement Fee: £999

Rate: 1.35%

Term: 35 years

My clients are first time buyers looking to buy a new build flat in London.

The property was surrounded by commercial developments, and they were looking to purchase a car parking space at the same time on a separate deed. The property itself was also subject to a restrictive covenant that means only people from the local area are entitled to purchase the property. This massively restricted the lenders who would take the case as the resale value of the property is limited.
After an attempt with a major lender, who couldn’t issue a valuation on the property we looked to be stuck.

I eventually found a solution with Halifax. Three months after the first application went in, I managed to get them an offer within ten days of applying to Halifax and they’ve just exchanged.

Interested in purchasing a new build property? Get in touch with Luke.

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