The investors, a married couple, were delighted after snapping up the £200,000 former bank in Leeds at an online auction.
But their plans to develop the property into five two-bedroom flats looked doomed when they were let down by their finance provider, five days before the final payment was due. Failure to meet the deadline would have cost the couple their £20,000 deposit.
The first finance company pulled the plug because of complications, including the ‘non-standard’ building already having a tenant, despite it standing empty. It was also unable to lend the total funds needed to complete the purchase.
The clients had made the agreement at an auction sale, so the auction house referred the couple to Together, knowing that we can react quickly.
After reviewing the case – and following a visit to the site – we agreed to provide the full £134,000 needed. The finance was transferred within the five days, ensuring the customers met the deadline to buy the bank and retained their full deposit.
There were some complexities, such as the existing tenancy, but there was a plan in place for the existing tenant to give that up, so it wasn’t a setback for us. They were delighted with our fast and efficient service, which meant they could press ahead with their plans to develop the building into much-needed accommodation for professional workers near the city centre. The loan was for a 12-month term, with the plan to repay in full when the property was remortgaged following refurbishment.
This is a great example of when our common sense approach to funding can really work to benefit our customers as well as the local property market. Whether it is for an auction purchase, to repair a broken property chain or to fund a one-off opportunity , specialist lenders like us can often act faster than the mainstream to ensure customers don’t miss out.
