Together and Positive Lending have joined forces to fund a £500,000 second charge mortgage for a self-employed client looking to purchase a neighboring plot of land.
The client, a company director, had recently changed his business from a Limited Liability Partnership (LLP) to a Limited Company following his accountant’s advice.
The client wanted to buy the land adjoining his property to prevent it from being bought by developers. However, the change in the company’s status and the loan purpose made it challenging to obtain financing from traditional high street lenders.
Positive Lending approached Together with the complex case, and the specialist lender agreed to the £500,000 interest-only second charge loan at just over 50% LTV. The borrower plans to repay the loan by downsizing in the future.
James Briggs (pictured), Together’s Personal Finance head of intermediary sales, said: “Over the past six months, we’ve seen a number of cases where clients have wanted to buy plots of land next to their homes to stave off unwanted future developments, as was the case here.
“However, because of the complexities of this case, including the fact he’d recently changed from an LLP to a Limited Company and the relatively large loan size, it was proving difficult to raise the finance.
“Our specialist underwriters worked with Positive to come up with an innovative solution and were able to provide an offer quickly to meet his neighbours’ deadline.”
Paul McGonigle, CEO at Positive Lending, added: “Many other lenders would have been deterred from providing a half a million pound second charge loan because of the recent change in the client’s employment status. We were able to look at all aspects of the case, and all parties – us as a second charge mortgage specialist, the respective valuer and Together – worked in partnership to provide the client with the best possible outcome.”
