Together saves property investor's purchase

Together has provided a £550,000 short-term loan in five working days to help a property investor who was let down at the last minute by his high street bank.

The client had held a business account with his bank for a number of years and full credit approval had been agreed for both the purchase and subsequent development of a property.

However, this was subject to the local council confirming retrospective planning permission for an extension that had already been built to the rear of the building.

Due to these delays, the customer was unable to get a ‘certificate of lawfulness’ to backdate planning permission for the extension, which meant the bank could not release the funds in time.

The client was put in touch with Together via the bank referral scheme, which requires banks to direct business customers they cannot assist to a number of selected alternative finance providers.

After reviewing the application and instructing a new valuation – as well as assessing proof of income and financial statements – Together provided the £550,000 needed on a 12-month term at 54% LTV.

“This is a great example of the mainstream banks working with us to help their business customers access the finance they need,” said Daniel Owen-Parr, head of professional sector and auction at Together (pictured above).

“In this case, the customer needed the funds quickly to buy and then refurbish this impressive Victorian property, and get it back on the market as fast as possible.

“Our ability to deal with more complex issues and provide funding ahead of planning permission being granted – combined with our speed of service – made us the right fit.

“We knew how important the deadline was and we pulled out all the stops to deliver the finance within five working days, which was a fantastic outcome.”

The investor plans to develop the property further by undertaking both loft and basement conversions, with the anticipated post-refurbishment market value more than doubling to £2.1m.

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