Case Study – BTL Purchase
Case Study – BTL Purchase Case Overview Type of Loan – Buy to Let Purpose of Loan – To purchase the adjoining house to their residential to add to their portfolio Security – 3 bed terrace valued at £430,000 Value of Loan – £322,500 Details and Difficulties Time Taken from Submission to Completion – 5 months but some delays were due to vendor Difficulties Overcome – 4 applicants in a limited company with two having no experience. The experienced applicants had income below £25,000. Exit Strategy – sale of property Anything else that makes the case stand out/unusual/exciting – First case for a new AR, not all lenders are comfortable when clients are purchasing houses that are adjoining their own/other properties they already own. Partner Commision Gross Fees Generated – £2607.50 Lender – Precise Mortgages Any Subsequent Fees/Opportunities as a result – Clients are portfolio landlords so may make further purchases
Case Study – BTL Refinance
Case Study – BTL Refinance Case Overview Type of Loan – Buy to Let Purpose of loan – To refinance BTL property held in late husband’s name. Applicant was left with several properties which need to be transferred into her name following the death of her husband. This was the first property. She also raised some money to pay off some of her residential mortgage. Security – 2 bed apartment in a converted former Victorian school Value and Term of the Loan – £206,250 over 25 years Details and Difficulties Time Taken from Submission to Completion – The application was put through to Precise on 12th September and completed 5th December. There were some delays caused due to the complications involved with the probate. Difficulties Overcome – This case involved probate, rent being paid through the solicitor, transfer of ownership and a slight down-valuation. Exit Strategy – Sale of security Anything else that makes the case stand out/unusual/exciting – The underwriters scrutinised the rest of the portfolio in detail and asked for a lot of supporting documents to evidence rental income which was being paid through the client’s solicitor as it was in her late husband’s name. Just before we thought we were ready to complete, the client was advised by her conveyancer that the offer was invalid as she hadn’t owned the property for 6 months prior to the application. This clause did not apply in this case but the solicitor caused the client a great deal of unnecessary distress and took a lot of convincing, before she would continue with the conveyancing work. Partner Commission Gross Fees Generated – £1531.25 Lender – Precise Mortgages Any Subsequent Fees/Opportunities as a result – The applicant does have other properties that she may need to transfer and refinance
Case Study – £10,680 In A Week
Case Study – £10,680 In A Week PARTNER GETS PAID £10,680 COMMISSION IN ONE WEEK Last week one of our Partners closed 9 deals within 7 days. The total commission generated from these cases totalled more than ten and a half thousand pounds. The deals mostly consisted of Asset Finance deals and Business Loans – Which the partner specialises in. These product types sometimes overshadowed by larger facilities, however, as this example demonstrates, they can be very lucrative. For guidance on how to submit asset finance cases please refer to the Brokerplan ‘case submission aide memoir’, which can be found on the partner resource portal. If you have any further questions about asset finance then please get in touch. Interested in becoming a Brokerplan Partner? email info@brokerplan.co.uk or call 0333 405 6666
Case Study – Amber Estates
Case Study – Amber Estates Deal of the Week Approached by a letting agent to refinance a mixed-use property in Shepherd’s Bush, London at 55% LTV would on the face of it seem straightforward, however… The two retail units were a trading restaurant and a Kebab takeaway with associated noise and smell affecting the marketability of the 7 flatsThe council were under the impression the upstairs comprised 2 maisonettes, not 7 flats so the permissions to let had to be considered.The client had a business loan that used this property and multiple other properties for security and this bank couldn’t tell the client how much money they needed to release this security.The client was extremely difficult to speak with, spending a lot of time abroad or incommunicado!Liaising with the two lenders that held charges on the asset, the bank, the client’s solicitor and the surveyors we finally persuaded the bank to fund not just the debt on the property but to but raise sufficient funds for the client to buy the freehold of another business he was “running”. A loan of £1.1m earned a total income of over £20k. The associate who introduced this, therefore, saw his first deal pay out over £10,000.
