Propp navigates lender setbacks to secure £400,000 deal

Propp has secured £400,000 in property finance for a client after navigating multiple lender hurdles, a lower-than-expected valuation and a highly complex property.

The case initially started as a second-charge bridging loan, with the client looking to raise £400,000 against a residential property to fund home improvements and inject capital into an existing business.

The property consisted of three large properties on a single title, with historical boundary issues and complications around road access to part of the property.

The first lender was able to lend behind the existing mortgage, but a lower-than-expected valuation meant they could no longer proceed at the required LTV.

The existing mortgage provider was then approached, but more than one missed payment was identified on the account, meaning they were unable to proceed.

The case was then moved to another lender, but they could not lend behind the existing mortgage either.

The structure was therefore completely reworked, moving from a second-charge bridging loan to a first-charge mortgage. This allowed the existing mortgage to be repaid while still raising the £400,000 required for the client's home improvements and business.

The new lender accepted the previous valuation without requiring a new inspection and lent at up to 70% gross. However, the historical boundary and road access issues added further complexity before the finance could be secured.

Despite the challenges, Propp ultimately secured the funding required allowing the client to move forward with their plans.

Propp CEO, Peter Williams, 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.

“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.”