The security property was a house in South London divided into two flats with one of the flats vacant and one occupied by a Sitting Tenant.
The owner of the house was willing to sell the whole house to the Sitting Tenant at a price which took his legal rights into consideration and was advantageous to him. The Sitting Tenant wished to purchase, but even at the discounted price offered he could not afford to proceed.
Our borrowers were introduced to the Sitting Tenant through a family connection and they effectively agreed to finance the Sitting Tenant’s purchase by agreeing to contemporaneously buy the property from him at a premium which made it worth his while to give up his tenancy and relocate.
After the purchase and determination of the Sitting Tenancy, the whole property would be unoccupied and our borrowers planned to obtain planning permission to convert the property back into a single residence, improve it and sell it at an enhanced value.
Given the rationale behind the discounted purchase price, United Trust Bank agreed to fund over 70 per cent of the purchase price for a 9 month term. The loan itself stood at £537,300.
Head of Bridging, Alan Margolis commented: “This was very nice proposition where we were able to help the property’s vendor, the Sitting Tenant and our borrowers to achieve their goals. The main issue was to ensure that the Sitting Tenancy was determined and this was readily achieved with the help of our solicitors.”
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