Our customers’ son and daughter were each purchasing a residential property with the assistance of a mortgage, and our customers wished to gift to each of them the balance of the purchase price.
As security for the loan our customers offered us a second charge on their London home and a first charge over a property they owned in East Anglia. Due to the low loan to value, the Bank took a commercial view and so only one of the security properties was formally valued.
A slight quirk of the deal was that the respective purchases were happening a few days apart from each other and so the loan was drawn in two separate tranches to complete each purchase as and when required.
The £648,000 loan will be repaid from the sale of one of the security properties.
LTV: 43%
Loan Amount: £648,000