UTB’s Bridging division was approached by Master Private Finance to assist their client (Mr F) in purchasing the equity in a property jointly owned in trust with their now estranged partner (Mrs A)
The property, which was 66% owned by Mrs A, was valued at £1.74m and had a first charge mortgage of £397k secured on it, which Mrs A would be porting to their next residence, the purchase of which was taking place simultaneously with the completion of the bridging loan.
Mr F needed to borrow £850k which, together with his own cash savings, would give him sufficient funds to purchase Mrs A’s equity in the trust for £1.14m. Mr F had already started a mortgage application with a High Street mortgage lender, however, they asked for another mortgage he was party to be cleared before they proceeded with the new mortgage, and this wasn’t possible. Mrs A was keen to proceed quickly with her onward purchase and Mr F was keen to resolve the matter quickly to ensure his former partner did not lose the house she now wished to buy.
Master Private Finance advised UTB that Mr F would exit the bridging loan via a remortgage provided by another lender, as they had indicated that it wasn’t necessary for Mr F to clear the outstanding mortgage on the other jointly owned property before completing the remortgage of the security property.
|Loan Type||Regulated Bridging Loan|
|Loan Purpose||Transfer of equity between separating couple|
|Special Features||• Introduced by Master Private Finance|
• Used FastTrack and AVM