Complex semi-commercial mortgage completed during international lockdown

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Loan: Semi-commercial mortgage


Amount: £1,931,250


LTV: 75%


Interest rate: 4.69% 5 yr fixed


Term: 10 years

Specialist finance is well-versed for scenarios in which the borrowers’ circumstances or the property itself is deemed too complicated for traditional lenders. However, applying for specialist finance is often seen as a challenging process to go through. Working with an expert master broker can not only alleviate the intricacies of a more difficult financial case, but create a stronger bridge between the borrower and the lender. Here’s how a complicated case, coupled with a global pandemic was able to complete.


Client

Husband and wife - experienced landlords of a semi-commercial property portfolio of 5 separate semi-commercial properties with retail units on the ground floor and residential upper floors. They also had a small side-line business, but the majority of their income derives from their rental income.


Situation

house model on coins for concept mortgage semi-commercial finance

The clients had a semi-commercial mortgage on their property portfolio. They wanted to find a better fitting mortgage which would enable them to reduce their payments.

They had also recently carried out development works to their own main residential property but had run out of funds to enable them to finish. The works had been partly funded by short-term bridging finance, which was quickly running out of time to be repaid.

Initially the clients approached High Street lenders for their semi-commercial portfolio mortgage. They wanted to achieve 75% LTV, but the rental income was not sufficient to the High Street lender’s criteria. To complicate matters further, the commercial and residential parts of each property were held under separate entities (mixed ownership between the husband and wife).

The clients reached out to us as we had helped out with some of their specialist finance applications in the past. With ‘complex’ scenarios being tackled at Vantage every day, we were easily able to help with their semi-commercial mortgage application.

However just before the formal mortgage offer from the lender was issued, one of the clients had travelled to India, got caught in the coronavirus lockdown measures – and were unable get a flight back to the UK. Although the client was able to sign the mortgage offer witnessed by a solicitor, they could not get the offer couriered back to the UK.

They were eventually able to arrange for a friend on a priority rescue flight to the UK to bring their documents back to the UK. The client’s solicitors arranged for the documents to be collected at the airport and then themselves delivered the documents to the lender’s solicitors to ensure that completion could take place.


Our solution

adviser discussing semi-commercial mortgage options

As a specialist finance broking partner, we are well-versed in complex, somewhat stressful scenarios with pressured deadlines. So, those out of the ordinary scenarios are not so much of a challenge for us to deliver.

Despite the complexities of the portfolio ownership, we were able to work with our lenders to achieve the desired 75% LTV semi-commercial mortgage with lower payments – structuring the finance as one loan across the portfolio - in joint names.

The bridging loan, which was due to expire, was so short of time that it expired before we were going to be able to complete. Even though we had not arranged their existing bridging loan, because we had such a strong relationship with the lender, we were able to achieve a grace period for the clients - with the client making a monthly instalment on the bridge, without having to pay any costly extension fees.


Benefit

The clients have turned to us in the past when they needed an expert who knew exactly how applications needed to be approached - and had strong relationships with lenders. So, they knew that their situation deemed too difficult by the High Street, would not be for us.

Our broad range of lenders on our panel, coupled with our expertise was able to streamline this mortgage into a simple process. Despite delays caused by the lockdown, our partnership with our clients not only delivers a master broker operation – but a trusted service to see our clients throughout tough times.


Result

Not only were our clients able to achieve their semi-commercial mortgage to reduce their payments, they were also able to gain breathing space on their existing bridging loan. All throughout the coronavirus lockdown.

Do you have a complex case which needs fast funds? For a quick chat or a meeting to discuss opportunities, drop us a line or give us a call today on 01753 883 195.