Capital Raise Remortgage on Flat Subject to EWS1
The Client: A full-time NHS professional with two buy to let properties for additional income.
The Property: A two-bedroom flat walking distance to the centre of a popular town in South East England. The property benefits from access to the countryside and fast transport links to central London.
The Finance: Our client wanted to remortgage the flat to raise capital for another purchase. Rather than another buy to let, she was looking to purchase a small holiday home on the coast for herself.
The Challenge: The most significant issue with remortgaging the apartment was that the block it was situated in was subject to enhanced fire safety checks. Consequently, we knew many lenders would not consider our client's application at all, or at least until a qualified inspector completed an External Wall Survey (ESW1) and any necessary alterations were made.
The Solution: Following a full EWS1 inspection, we needed to find out how significant the issues with the external cladding were and what measures were required for the building to meet fire safety regulations.
Fortunately, the alterations required were not too substantial, and together the freeholder of the building and the flat leaseholders were able to pay for the required works. Once completed, we were able to approach a buy to let lender that would consider highrise flats of this kind. As we were able to demonstrate that measures recommended in the EWS1 had been completed, the lender was comfortable to accept our client's application, and we were able to secure the capital raise and a competitive rate! Here are the details: