A client recently contacted Enness Bridging Finance to help finance a second property he had purchased. He had a 75% loan to value (LTV) residential mortgage with a major high street bank, but was struggling to attain the remaining 25%.
This client was a hugely successful UK tax lawyer, yet unfortunately, his assets were not very flexible because they were so tax efficient. He was purchasing a £2.2 million, 35-acre country estate based in Dorset and needed to raise an additional £550,000.
This meant my client was in need of a second charge bridging loan, which can be a very good option for anyone who already has a mortgage secured against a property, but needs further funds for a shorter period of time.
This case came with a few challenges, however, the first of which was the fact that the second charge would be secured behind the global charge on my client’s existing buy to let portfolio. This proved restrictive in finding a lender, combined with the fact that many lenders were not prepared to secure a charge against land that did not have planning permission, either.
We approached numerous lenders to source the most cost-effective lending structure for this case but the majority of lenders appeared to lack the appetite to lend. We were not deterred and persevered until we found the best possible solution for this client.
Luckily, we were able to contact a private lender that we had an excellent relationship with, who was happy to take a more holistic view on my client’s situation based on his personal profile and wealth of assets.
We were able to achieve the finance required at an extremely competitive rate of just 1.2%, making this an even more beneficial solution for my client.