During Covid-19 we’ve been supporting a property refinance for one of our clients that was extremely time dependent. Our client initially took out the finance last year on a 12 month bridging facility whilst works were being undertaken on the property. Their initial plan was to sell the property as most of their projects are flips. However the client felt that the full potential of the sale could not be realised due to Covid-19 so instead he decided to hold onto the property and refinance it.
This is when he approached us to support with the property refinance. Whilst it looked like a straightforward deal – Buy-to-Let (BTL) mortgage for a Limited Company, experienced investor and landlord the struggling point was getting a valuation that took into account the refurbishment works that the client had undertaken. In March we completed an application for the client that was fully underwritten and we were just waiting on a valuation to support the application. Whilst the lender was undertaking AVM and desktop valuations this was no where near the valuation for the property so we held out until physical valuations were available.
Physical Valuations available……
As soon as valuers were able to visit the property we were on the phone to progress the case. Due to the direct contact we had with underwriters, business development managers and the sales director. We were able to contact the valuer directly to arrange the valuation rather than waiting for them to process the request. When we found out that the valuer had 6,000 cases to progress and we were in a queue we didn’t give up. Having spoke to the valuers the client was able to contact them to arrange an appointment, this was late on a Tuesday afternoon and the valuation was then booked for the Wednesday.
We then had until the Friday to get an offer issued as the product was going to be withdrawn. The client was anxious as he didn’t want to lose the rate or the LTV. So after spending a few hours on the phone to the lender, and underwriters the formal mortgage offer was issued a 17:10 on the Friday. This meant the client had secured the product, rate, and obtained the valuation he needed. Throughout the process all the client had to do was attend the valuation to provide access and sign the mortgage offer, everything else was taken care of behind the scenes for him.
Yes we’ve certainly grown a few grey hairs but due to having a direct relationship with the lender, we managed to progress at speed the application and offer. We even managed to get the lender to agree to an extension in the product cut off as a plan B but luckily this wasn’t needed.
The end result – Property Refinance agreed!
In all the client will now receive funds that will
- Refinance the existing debt 80k
- Cover his refurbishment costs of 20k
- give him additional funds of 35k for his next project
To find out how we can support your next property finance book a free consultation