In this case, a customer was looking to raise £1 million on a ‘Multiple Unit Block’ of five self-contained flats in order to capital raise to buy another property.
A Multiple Unit Block is a single building with multiple, separate, independent residential units owned under a single freehold title. This was a portfolio landlord who had a large number of properties in their portfolio, therefore the adviser and lender knew there was a strong level of experience here and that this individual would fit comfortably into the ‘professional landlord’ definition.
The ‘Prudential Regulation Authority’ (PRA) changes affecting landlords with four or more properties added an extra layer or two of complexity for some lenders who have had to be brought up to these new standards. Connect Mortgages has a panel of over 100 lenders, some of which immersed in this type of lending, with an aim to make the lending experience as simple as possible.
One of our lender’s underwriters worked closely with the adviser to let them know what was needed and why, which gave them a clear idea of the overall requirements. In this case, the only information requested was an Assets and Liability Statement (taken in their format of choice) rather than a raft of unnecessary documents which can only lead to delay in making the decision. With all the information gathered, the valuer was contacted to let them know that the property was a ‘Multiple Unit Block’, ensuring that the valuation would be completed properly first time – the valuer was booked in for three days later and thus the lender would have the valuation back in double-quick time.
Due to the fact that £1m is a lot of money to lend, this lender wanted to ensure that they were completely happy with the case and that no issues might arise later which result in disappointment for the customer. The case was therefore referred to their ‘Credit Committee’. Given the diligence of this work, and the strong relationship with the adviser, the Credit Committee were able to respond within 24 hours and approve the case at the first time of asking.
On paper, such cases might look worryingly complicated however if you pick the right adviser with the right experience and quality, then it clearly doesn’t need to be like this at all. Contact Connect Mortgages today on 01708 676 111 on complete an enquiry form.