Remortgage of take-away shop with flat above to repay unsecured debts
The client: A self-employed taxi company operator approached us looking to raise finance on a semi-commercial property to repay some unsecured debts. He also owns two buy to let properties in his personal name.
The property: A semi-commercial property in Nottingham which the client owns outright. The ground floor retail unit is leased to a hot food takeaway business. Above it is a two-bed flat which was run-down and in an unlettable condition when purchased.
The finance required: The client was looking to raise £60k (in his personal name) to repay some unsecured debts and have sufficient funds to complete the final refurbishments to the flat above. We knew that finding a lender might be tricky for two reasons:
- The client had more than £40k in unsecured debt and an untidy credit profile
- Not many lenders will accept takeaways – the potential for late night opening hours, smells and noise can make these properties difficult to sell quickly
A bit of research and a few conversations later, we identified a lender that was happy to accept an application.
The application process: In addition to helping the client complete the application form, we helped him to collate all the necessary supporting documentation including:
- Proof of identity, address and income
- Details of assets and liabilities
- Latest 3 years’ tax overview
- 3 months’ bank statements
The lender then manually underwrote the application which included a discussion to clarify the client’s credit record. Shortly afterwards a formal mortgage offer was issued on the following, acceptable terms.