High Loan To Value Mortgage For Unusual Property

THE SCENARIO

I was approached by a couple looking to purchase an investment property in Clapham. The purchase price was £1.885 million and my clients wished to borrow £1.335 million (71 per cent loan to value) which required them to obtain a high loan to value mortgage for unusual property. The deposit came from the sale of another investment property and my client’s own resources.

The property that my clients wished to buy had two kitchens, separate utilities and separate entrances. In the past a family had lived in the majority of the property with their nephew occupying a smaller, self-contained part.

Having approached other brokers and lenders my clients could not find a lender to agree a mortgage, primarily because the property had two kitchens. In addition, my clients had been renting their main residence for some time and many lenders were concerned that my clients were intending to live in the property rather than use it as an investment.

Despite other brokers and lenders being unable to agree this deal, my relationship with a range of underwriters meant that I was able negotiate and agree a bespoke deal for the high loan to value mortgage for unusual property on behalf of my clients. I agreed the client’s full lending requirement on the condition that they would have access to the property between exchange of contracts and completion in order to bring it to the lender’s required standard. This primarily involved removing the second kitchen.

OUR SOLUTION

The lender was also happy to lend on an investment basis once they were satisfied my clients were not planning to live in the property. I demonstrated this by providing a recent assured shorthold tenancy agreement for their main residence. Once the kitchen had been removed to the lender’s satisfaction, my clients were able to complete. They benefited from a discounted deal with a pay rate of 4.39 per cent with no early repayment charges. In this case, it was my close relationship with a range of niche and specialist lenders that enabled me to agree a deal where other brokers had failed.

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