Saving a £480k deposit has an overseas twist
Short term bridging finance can be used in a variety of circumstances including occasions when borrowers need to protect significant monies already committed to property projects.
In this example, United Trust Bank’s customer had exchanged contracts to purchase off-plan a new ground floor apartment in Central London with the intention of letting it out. They had paid a substantial deposit upon exchange, but since committing to buy the apartment, market conditions had softened and our customer decided that they no longer wished to complete. Instead they decided to assign the contract to a new purchaser.
Unfortunately the assignee dropped out very late in the day leaving our customer at risk of losing her £480,000 deposit.
Our customer managed to agree an extension, but still facing an imminent “drop dead” completion date, their mortgage broker approached UTB for assistance.
On learning that the deposit and additional funds to purchase the property were coming from our customer’s father who resides overseas, it was agreed to add him to the loan.
We like to meet all of our customers in person, but in this case the father could not come to the UK in the short timescale available. Working with our solicitors we found an international law firm that could both assist with the KYC requirements for the father and provide him with the appropriate legal advice, so enabling the loan to complete on time and saving our customer’s deposit.
Head of Bridging, Alan Margolis, commented “This scenario is not unusual for Central London where the attraction of residential property to overseas purchasers is very well noted. However, as ever, behind the headlines lie individual stories and often, they involve families. Such was the case with this loan and it was pleasing to be able to assist and save our customer’s a substantial deposit.”
Loan Amount: circa £2m LTV: 65%