Bridging Finance For Quick Chain Break For Countryside Residential Home

The Scenario:

Our client approached us with a requirement to purchase a new residential property in the countryside.

The title included a large barn and adjacent field, this is something which can be tricky for some lenders as often barns and acreage can be associated with commercial activity.

The client also received the majority of their income through commission which added a further complexity.

The Solution:

We approached a lender who was comfortable with both the client’s earning structure and the property.

To provide long-term security on rates we achieved a 10-year fixed rate at less than 2%.

As we were nearing completion the client’s buyer unfortunately pulled out, so we needed to act quickly so the clients didn’t lose their dream home.

We arranged a bridging facility secured across both properties at a rate of 0.2% per month.

The loan was structured over 24 months with no exit charges, allowing plenty of time for the sale. Once the sale is complete, we will arrange a new long-term fixed rate for the client.  

Banks have very different appetite to income earned through commission, so it is important to ensure the correct lender is approached.

Properties in the countryside have always had natural appeal but over the last year, with a movement towards working from home, their appeal has been increased further with the benefits of an extra bedroom or outdoor space being felt.

Luther said, “The downside of these properties is that often the uncommon features such as land and outhouses can make finding finance tricky however, having dealt with similar cases in the past its certainly a requirement I can accommodate”.

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