Our products are structured to give your clients the flexibility they need. Here’s an example of how:

The client:

The client was a newly incorporated UK-based Ltd Co. formed of two Directors, both with existing UK lending experience. The clients planned on purchasing a multi-unit block of flats, all held on one freehold, based in the West Midlands.

The situation:

The MUB contained 14 units, all above 35sqm with a cross collateral charge and had a property value of £1.7m. The clients were looking to raise 75% LTV to purchase the whole block on one loan, however no leaseholds were yet created equating to 14 units’ worth of exposure on the single block.

The solution:

Using our TermTen loan, we enabled the client to purchase the whole block with no need to divide out the securities to different lenders, saving the client from additional fees and administration delays.

Despite the leaseholds of the units not yet being created, we were comfortable with offering the loan considering we were taking the freehold of the 14 units with a cross collateral charge. Structuring the loan this way allowed us to offer the client the full 75% LTV with a 2 year fixed term rate rolling onto an SVR after that.


Have a case to discuss?

 

Give us a call or contact your BDM today to see how we can help you.

 

Mortgages
This website is for authorised intermediaries only. This information has not been approved for use with customers and is not intended for public or customer use. Your clients’ property may be repossessed if they do not keep up repayments on a mortgage or any other debt secured on it. Loans are subject to status, terms and conditions.

Daven Trust means Daven Trust Capital plc, a company incorporated in England and Wales with company number 07852281 and registered office at 32 Suderlane Street, London, EC9B 9HG. Daven Trust Capital plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, under reference number 678976. Buy to Let is not regulated by the Financial Conduct Authority or the Prudential Regulation Authority.

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This website is for authorised intermediaries only. This information has not been approved for use with customers and is not intended for public or customer use. Please confirm that you are an intermediary before accessing information on this website.

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