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BRIGHTSTAR SAVED A COMPLEX PROPERTY TRANSACTION IN JUST FIVE DAYS

Objective

Mr & Mrs X were purchasing two properties with the intention of refurbishing them and selling on at a profit. However, they were let down by their lender just days before completion was due to take place.

Mr & Mrs X needed to secure funds quickly as the vendors had other buyers lined up and so were at risk of losing the properties. This was especially cumbersome since they had already lined up buyers for when refurbishment was completed.

Obstacle

One of the two properties, a small block of four flats had been rented out as standard residential flats for numerous years. However, it had come to light that they did not have the correct permissions as residential properties and were classified as a holiday let accommodation.

Outcome

Brightstar were able to obtain short term finance with an alternative provider at 70% Gross LTV of the agreed £435,000 combined purchase price. The rate offered was 0.85% per month for a 12-month term.

The new lender was comfortable that the pre agreed onward sale of the assets was a strong exit strategy for the short-term finance; Brightstar also sourced a refinance option as secondary repayment method should the need arise.

The lender also accepted a re-type of the existing valuation which were able to secure directly from the valuer. From initial enquiry to completion took us just five working days to fund the loan resulting in the clients being able to proceed with their purchases.

The introducing broker received £2400 for referring Mr & Mrs X to Brightstar, where we managed the case from enquiry to completion, including the required advice process.

 

FOR INTERMEDIAIES ONLY AND NOT INTENDED FOR THE GENERAL PUBLIC

    #madeeasy