Case study: The Complex Case
The following case study is an example of how we assisted one of clients with a new purchase by utilising an existing asset. It also displays the bumps in the road we can encounter and how we work to overcome these.
Watch a video version of this article:
The total initial loan was £910,000 at a rate of 0.8% and was cross charged over 2 properties - 1 was a new purchase Buy-to-Let and the other was an existing semi-commercial property. The overall loan to value came in at 66%.
The existing semi commercial property, which comprised 2 retail units with flats above, had an existing loan that needed to be repaid. The rest of the equity enabled the clients to use funds towards the new Buy-to-Let purchase.
One issue that arose during the application process was that the semi commercial property was owned in personal names with 2 owners, and the new purchase was in a limited company name and owned by one of those two clients. We overcame this issue with ILA being provided for the client who was not part of the purchase.
The 2nd issue was there had been a historical bankruptcy registered against the semi-commercial property, which should have been removed in the past but wasn’t. This caused additional problems that then were resolved by 2 very experienced solicitors.
The broker for the case is already in the process of refinancing the deals on to term Buy-to-Let and commercial loan.
This case, and many other alike, represents what The Bridging Group stands for. Transparency, speed and, above all, a coherent and flexible approach.