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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