Our client was looking to purchase a residential property with his wife. He wanted to raise capital through his limited company buy to let to contribute as a deposit.
However, he had some recent adverse credit which was proving to be a major stumbling block. He approached us to see if we could help.
We secured a “Let to Buy” mortgage facility which consisted of two separate transactions – a buy-to-let refinance of his property held in company structure and a new residential purchase with a national high street bank.
On the surface, this should have been a relatively simple inquiry with a couple of hurdles to be overcome before achieving a result. Firstly, an opportunity for the clients to purchase their dream home presented itself virtually out of nowhere and the property itself had a number of interested suitors. As a result, we had to source options quickly and efficiently.
The clients had some capital to contribute towards the deal but a significant portion of funds had to be raised from their unencumbered buy-to-let which was held in a company structure.
High interest rates & stress tests made it difficult to secure the borrowing required but we were able to source a specialist lender that could overlook the CCJ and offer 75% loan-to-value fixed for five years.
With the deposit now secured, we had to source a suitable residential mortgage. While this should have been relatively straightforward, the recent CCJ put the scenario out of the appetite of almost every “high street” lender.
The key to securing terms was our relationship with the premier division of a national high street bank. We were able to negotiate a policy exception out with standard policy and secure a market-leading rate that was fixed for two years.
With both offers in place, the clients could finally complete. However, a final issue arose when the initial buy-to-let lender insisted on a solicitor being selected from their closed panel – which is common for buy-to-let transactions involving a limited company.
There were only a select number of firms to choose from, but time was of the essence, so a reliable firm was crucial. We were able to assist by reaching out to contacts at one particular firm, allocating a specific conveyancer to the client who could work the case quickly and efficiently.
Both mortgages were able to complete within three weeks which was enough time to satisfy the vendor and conclude the process. The clients are delighted with their new home and with what was, in the end, an extremely satisfying result.
We look forward to working together in the future.
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