If you are a lover of so-called ‘quirky’ properties, you’ll know that securing a mortgage on this type of real estate isn’t always straightforward. However, it’s far from impossible and it’s an area in which our team has lots of expertise. To discuss this or any other large or complex mortgage case, please contact us on 020 7519 4984 or email us.
What makes a property ‘unusual’ in a lender’s eyes?
In some cases, it can be the property’s status – for instance listed buildings and homes of multiple occupancy (HMOs) require bespoke lending. The construction of the property is also a factor; therefore timber framed, concrete or pre-fabricated houses generally fall outside of the terms of a regular mortgage. Then there are homes with specific issues, such as subsidence. Contrary to popular belief, you can get a mortgage but you just need to seek out the right lender.
Case profile
In one of our recent cases, our client was looking to buy an unusual property which also had a number of issues. A small property development firm, the directors were looking to purchase a smallholding encompassing land, a large barn and a semi-detached cottage which required complete refurbishment. The site had some clear challenges, as there was evidence of both Japanese knot weed and asbestos-related issues in the concrete-framed barn. After completely refurbishing the cottage they planned to let out the whole property. What the largemortgageloans.com team needed was to find a lender who shared our client’s vision.
Solution
The original asking price was £500,000 and an offer had been made and accepted. However, this was subsequently down valued, which resulted in a revised offer being made and agreed by the vendor. The bank put in place a 12 month bridging loan, which would give our clients the funds they required and some time to complete the works on the cottage and barn.
Once the works are complete, the directors intend to let out the property and switch to a more traditional, long term loan as they will be able to evidence the yield and long-term investment growth on the property.
Once again, our team’s network and expertise solved a complex situation which, in the wrong hands, could have resulted in a ‘no deal’. If you’re facing a similar situation, don’t hesitate to get in touch and find out if we can provide a bespoke lending solution.
Deal Highlights
| Loan amount: | £300,000 |
| Rate: | 0.9% |
| Loan To Value: | 67% |
| Term: | 12 months |
| Type: | Bridging loan with interest retained |
| Loan purpose: | Purchase |
| Lenders arrangement fee: | 2% of loan amount |
| Early repayment charges/Exit fee: | 0.9% of total loan |
Notes
This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.
Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice.
The Financial Conduct Authority does not regulate some aspects of commercial mortgages, secured loans or bridging finance.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage or any other debt secured on it.
To make an enquiry call us on 020 7519 4984
