Our customer inherited a property which was subject to a lifetime mortgage. The amount required to redeem the mortgage was determined by the last valuation placed upon it by the lifetime lender. However, as our client had subsequently undertaken works to improve the property, the amount required to repay the lifetime mortgage would substantially increase when the property was revalued.
Accordingly he had a time critical requirement for a short term bridging loan if he was to avoid the substantial increase in the redemption value of the existing mortgage.
The legal situation was not straight forward. Probate had been granted although the property had not yet been transferred into our customer’s sole name. In addition, as the legal due diligence commenced it transpired that the customer’s sister also had an interest in the property which had to be dealt with and to further complicate matters the sister resided in the United States. The Bank’s expertise and experience allowed us to deal with this complex arrangement.
United Trust Bank and its solicitors then liaised not only with the customer’s solicitor, but also the sister’s English solicitors who provided her with advice and her American lawyer who dealt with the signing of documents.
The loan completed in time with the customer avoiding the increased life time redemption charges
Amount of Bridging loan: £96,000
LTV 25%