We were approached by a married couple who are part-time property investors. They were in the process of selling one of their rental properties – a 2-bed flat let for £2,000 pcm - in order to raise the funds for a deposit on a new home. Unfortunately the sale on the flat fell through at the last moment, and as the couple didn’t want to lose the new home, they approached us for help in getting short term finance to tide them over until another buyer could be found.
Time was of the essence, so we approached a specialist lender which we have worked with many times before, that has a reputation for completing deals really quickly. The lender was able to provide an agreement in principle on the same day as receiving the loan application.
The valuation was then immediately instructed and the lender’s formal offer letter followed shortly after. The funds were released in time for the purchase to go ahead.
Here are the details of the deal:
Property value: £850,000
Loan amount: £130,000
Rental income: £2,000 pcm
Rate: LIBOR + 7.05%
Term: 6 months
Lender arrangement fee: 1.95% added to the loan account
Mortgage payment: None. Loan interest added to the loan account.
Completion date: September 2015
Consultant: Nick Helm
Consultant tel: 01732 471 608