The Coronavirus pandemic has slowed mortgage completions with some now taking months to reach a conclusion. Property developers, small and large, that need to complete deals quickly can use bridging and secured loans instead, to make sure they do not miss out on securing their next project.
Roma, a bridging loan specialist, and Loans Warehouse recently completed a complex case for a borrower wanting to refurbish and convert a three-bedroom house into a five-bedroom house of multiple occupancy (HMO). The borrower needed to secure the finance in one week or miss out on the property.
The house had been purchased by a vendor on day one and then sold the borrower the next day. This meant the property was not yet registered in the name of the borrower. The property also needed a valuation completing in time to agree a bridging loan.
Loans Warehouse worked with Roma to obtain undertakings from the vendors solicitors to ensure both land registrations were made at the same time. Draft transfers were provided by the solicitors of the original vendor to help mitigate any future registration issues.
The valuation was completed using AVM technology, which alleviated the need for a physical valuation and helped to meet the borrower’s deadline.
Once these details had been finalised, Roma was able to agree £320,000 loan using the main purchase property and an additional security. The borrower was then able to make the alterations required to a high-quality finish.
Lorraine Hart, Head of Credit Operations at Roma Finance said, “This was a highly time sensitive case, coupled with a with series of challenges, some of which were not in our direct control. This is a great example of the need to be agile with strong underwriting experience, from Loans Warehouse which allowed our team to make informed decisions and ultimately benefit the customer. This is a great start to our working relationship with Loans Warehouse and we are looking forward to building on this in the future”
Matt Tristram, Co-Founder of Loans Warehouse said, “Roma Finance had just been appointed to our panel and this was our first case with the team. It was certainly a challenge, but we have been seriously impressed with their approach to this application, their process and dedication to find a positive solution. We aim to find the best fit solution for every case and Roma clearly share our values.”
Find out more about a secured loan at Loans Warehouse or read more about bridging loans.