One of our introducing partners referred a semi-retired couple who were looking to downsize. They were looking at purchasing a Bungalow, but were conscious that they are in short supply and don’t stay on the market for very long. The introducer wanted to have finance in place to enable them to secure a purchase without having to wait for the sale of their existing property to go through.
Property to purchase
They were looking at a 3-bedroom detached bungalow, which required some refurbishment. The property was on the market for £525k, with other interested buyers at the time.
Their existing property was a 5-bedroom detached house, situated in an affluent area with high demand for this type of property. It was valued at £1.115m, the property had benefited from an extension and basement developments in the past, but was in need of modernisation.
The clients wanted to purchase the bungalow quickly at full market value, preventing other potential buyers bidding for the property.
Our clients did not have the sufficient capital required to purchase the property and due to their age and income, our introducer wasn’t able to source a traditional mortgage. In addition to the purchase price, stamp duty was payable and they required some additional funds for some light refurbishment.
The three main factors were:
As this was a regulated contract the introducer was more comfortable with Finance 4 Business providing the advice. Secondly, speed was of the essence. We needed to entrust a lender that would complete in the shortest timeframe possible, while delivering on all the requirements.
By combining the existing and target property, we were able to significantly reduce the overall LTV and raise the full £620k. This covered:
The purchase of the bungalow
Paying the stamp duty on the purchase
Covering all refurbishment costs
Having discussed the proposition with the most suitable lenders, Precise Mortgages was the lender that satisfied all of the clients requirements. They were able to offer the full funding, completion in the required timeframe and at a rate that was favourable to the clients. Valuations of both properties were carried out and the reports completed on the same day. The offer was received 2 days later and completion took place a mere 9 days after the offer.