Our client and his partner both owned their own flats and wanted to sell both to purchase a joint residential property. Client’s partners flat sold quickly but he couldn’t sell his due to it being constructed with cladding.
They also couldn’t remortgages his flat as no lender would look at it until the cladding had been addressed.
He and his partner both owned separate flats and their intention was to sell both and use the joint equity to purchase one single property for them both to live in. Our client’s partner sold her property very easily however he was unable to sell his property due to it having cladding. He also looked into the option of remortgaging his property with another lender as a rental property, but all lenders would not accept a brand-new remortgages application unless the cladding had been dealt with.
How did we help?
As our client was not currently in the position to sell his property or remortgage with another lender, we drew up a plan for him to stay with his current lender and we managed to get the lender to agree to a consent to let deal where he would be able to rent out his property for 2 years and once the cladding had been sorted, he could potentially sell the property or remortgage to another lender. His current lender agreed to the consent to let on the basis that our client had owned his current home for more than 6 months.
Although he had not sold his flat, we looked into our client’s situation and finances, and we came up with a plan where they could use the equity from his partner’s flat and also some of his own savings to put down on a new property and we secured him and his partner an attractive new mortgage on a new home together.
What was the rate?
A 0.85% variable rate until 29/09/2023, and after the fixed period, it reverted to the bank’s 3.59% standard variable rate.
The overall cost for comparison is 3.3% APRC. The arrangement fee was £999, and early repayment charges were applied. The mortgage term was 31 years.