The Client
Our clients had agreed the sale of the basement section of their property, which was being sold separately from the rest of the building.
However, the basement had not yet been separated from the property’s main legal title.
They needed a finance solution that would allow the sale and title split to move forward, before moving onto a longer-term residential mortgage.
The Challenge
There were a few things that needed to come together to make the transaction work:
- The basement sale would leave a shortfall when repaying the clients’ existing mortgage.
- The basement still formed part of the property’s main title, so legal work was needed to separate it.
- The new lender needed to be comfortable with those title changes taking place while its loan was secured against the property.
This final point required Consent to Dealing. Put simply, this meant the new lender agreed to the necessary changes being made to the property title, allowing the title split to progress.
The Solution
We arranged a £165,000 regulated bridging loan over 12 months to cover the funding shortfall and repay the existing mortgage.
Importantly, we found a bridging lender that was prepared to grant Consent to Dealing. This meant the sale could move forward while giving the clients the time and flexibility needed to complete the title split.
Once the legal work was finished, the clients could then move onto longer-term residential finance.
The Outcome
With the title split complete, we arranged a residential remortgage to repay the bridging loan.
The clients were also able to raise additional funds to cover legal works and planned renovations to the property.
The bridging finance provided a solution to the immediate funding gap while allowing the different parts of the transaction to come together.
“What mattered for our clients was having a solution that worked beyond the immediate funding gap. It gave them the flexibility to complete the sale, deal with the title changes and move onto their longer-term mortgage.” James Adkin, Associate Director, Capital B.
Why Choose Capital B Property Finance?
We regularly support property investors with acquisitions that require specialist funding, careful coordination and tight timescales.
If you’re selling part of a property or dealing with a funding situation that doesn’t fit neatly into a standard mortgage process, speak to our team to chat through the options.
