Area: London
Capital Raised: £1.125m
The scenario
Have you ever found your dream home, only to discover that it doesn’t have a kitchen and can’t be purchased with a mortgage? If so, you’re not alone. This is a common problem that many people face.
We were recently approached by a client who was in this situation. We were able to help them find a solution that allowed them to purchase their dream home.
In this case study, we will discuss the challenges of buying a property without a kitchen and how we were able to help our client overcome these challenge
We were approached by a couple who had agreed to purchase a new residential property in London. They both worked for a well-known accountancy firm and their ability to borrow was more than sufficient to cover the purchase price of £1.5 million. One applicant was residing in the UK on a working VISA, which also can impact their ability to borrow.
The property had been inherited by the current owners and unfortunately had suffered a water leak in the kitchen. The kitchen had been removed and basic remedial work had taken place. There was no long term damage, but the property was now without a kitchen in entirely.
The owners did not want to install a kitchen and our client did not want to pay for a kitchen to be installed prior to purchase.
The solution
Our solution was to arrange private bank finance as this was the most cost effective form of finance which was suitable given the condition of the kitchen. Working with the client we put in place a long-term plan to install a kitchen and then we would refinance them to a conventional mortgage.
Some highstreet lenders will not allow refinance of a property within 6 months of ownership, but there are some who are able to consider the transaction. As soon as the client completed on the purchase we applied for a new mortgage. Once we had the mortgage approval we then scheduled the valuation to take place after the works had been completed. The advantage to applying for a mortgage so soon after completion is that it secured a product for the client. So if market rates were to increase they would be shielded, and if they improved we could update their loan to take advantage.
As the re-mortgage was completed through a highstreet lender they provided a free valuation and free legal service. This means the client did not have to incur the same costs twice in order to move the loan across to a lower-cost long term mortgage.
How to find out more
Our advisors can help you understand your options and choose the right mortgage for your needs. We offer a free consultation, and there is no obligation to proceed.
To schedule a consultation, please call us at +44 (0)20 3992 8700 or message on on WhatsApp +44 (0)7828 714566.