Lancashire Mortgage Corporation has helped a client save a legacy with a £500,000 short term loan facility to clear a tax bill in just 10 days.
The funding was required to clear a HMRC debt inherited from his late father and secured against the property which was left to him.
The 6-bedroom property had been placed on the market for a price of £1.1m and the client was keen to keep control of his asset but only had 10 days to clear the tax bill.
LMC worked with the legal team at Priority Law to meet the tight deadlines and the applicant then split the property into two lots, obtaining new titles for both together with planning permission for the five acres of land which came with the property.
The client then obtained valuations of £1m for the property and £875k on the land development which was sold to a housing developer and the money used from the sale allowed the client to repay the loan in full after just eight months.
Jamie Jolly, Commercial Relationship Manager at Lancashire Mortgage Corporation, called it a great example how short term finance could deliver long term solutions.
“Lancashire Mortgage Corporation’s network of professional partners worked closely together to deliver outstanding results against incredibly tight deadlines,” said Jamie.
“The client retained full control of his asset and increased the commercial value by 70%, thanks to a short term bridging loan which he was able to pay off within two-thirds of the timeframe initially agreed.”
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