The deal helped the client repay their existing mortgage and raise £400,000 for home improvements and investment in their business.
Propp has secured £400,000 for a client’s home improvements and business investment after restructuring a deal following several lender setbacks.
The case began as a second charge bridging loan against a residential property comprising three large properties on a single title.
Historical boundary issues and road access complications affected the security.
The first lender could lend behind the existing mortgage, but a lower-than-expected valuation put the required loan-to-value beyond its limits.
The existing mortgage provider could not proceed after more than one missed payment was identified.
Another lender was unable to lend behind the existing mortgage.
Propp restructured the deal as a first charge mortgage, allowing the existing mortgage to be repaid while raising the £400,000 required.
The new lender accepted the previous valuation without another inspection and agreed to lend at up to 70% gross.
Boundary and access issues added further complications before funding was secured.
Peter Williams, chief executive officer at Propp, said: “This was a case where it would have been very easy to give up.
“We had lender changes, a lower valuation and a complicated property, but the team kept adapting the structure until they found a solution that worked.
“The client needed time to sell the property while also releasing capital to invest into the business.”
Williams added: “Rather than treating the previous declines as the end of the road, the team looked at the case differently and found another route forward.
“It’s a great example of why specialist property finance is about more than matching a client to a set of criteria.
“Sometimes you need to rethink the entire structure of a deal and have a lender willing to work with you to make it happen.”
