MFB's commercial mortgage team worked with our client to secure a bridging loan allowing them to settle medical bills in the US.
The Client
Our client was an experienced landlord who had lived in the United States for over two decades. He had one remaining investment property in the UK.
The Property
A three-bed semi-detached property in the South of England. The property had been used as a rental investment property in the past, generating a rental income of £1,500 per month.
The Finance
Our client wanted to raise capital against the investment property in order to repay unexpected medical bills in the US.
The Challenge
Three challenges that we faced with this case were:
- The property had not been let in over 18 months, and formal tax returns were unavailable.
- Our client was unemployed and had no provable US income. Unfortunately, due to the pandemic, our client was currently unemployed. UK ex-pat lenders were concerned about background income.
- The money was going to be used for personal reasons, and the property had previously been the client’s residential property.
Many of the bridging lenders we approached felt it was an unusual request and questioned the transaction.
The Solution
Despite our attempts, no ex-pat rental investment lenders would consider the case until our client was re-employed. Consequently, drawing on all our experience, we secured a bridging loan to allow our client to repay the specialist lender, with the view to exit onto a rental investment mortgage at a later date.
Our expertise in short-term property finance meant that the case was completed just two months from when the client first contacted us. Despite the complexities of the case, we were able to draw from our knowledge and reputation in the market to reassure the lenders of their queries concerning any further medical bills the client may face.
Property Details
Property value: £450,000
Loan amount: £272,000
LTV: 60%
Rate: 0.79% per month
Term: 12 months
Bridging loan payment: £2,148.75 pcm
Lender arrangement fee: 2% deducted from loan
Rental income: £1,500 (estimate)
Consultant: Andy Elley, Head of Commercial, CeMAP, CertBB&C
Have a similar case?
If you would like to discuss whether a bridging loan would suit your property finance needs, get in touch, and one of our expert mortgage brokers will be happy to advise.
