Member Article

Troublesome Investment Property Receives Confidence Boost

Japanese Knotweed threatens to scupper deal as mortgage lender walks away from mortgage in principle on auction bought property.

Moving ahead with no reason to doubt securing a Buy to Let mortgage offer the client bought at auction for 180 thousand pounds, leaving 28 days to complete the deal and pay the final balance.

With one week left to complete the mortgage application was rejected based on evidence of Japanese knotweed to the rear of the property. The mortgage lender would not offer the mortgage until this invasive plant had been professionally eradicated and certified as being clear.

With a completion certificate in hand HFBS were approached to help close the deal with a £123,000 advance - all within the tight deadline of a working week.

Ian Broadbent, director at Holme Finance Bridging Solutions says: “Facing losing the deposit as well as the whole deal our client was taking a huge risk from the start hoping the mortgage would come through in the allotted 28 days. Of course the unnoticed evidence of Japanese Knotweed would have always been a deal breaker without the necessary works and insurance to ensure the weed would not reappear.”

“However we did advance the higher LTV we would normally consider due to the fact the relevant insurance was in place and plans for completed refurbishment to let would take just a few short weeks. We had the confidence to fund and were happy to save the deal within a very tight deadline.”

HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending.

HFBS prides itself on being very different, filling a niche in the market to complement existing providers of short term finance and completing the more straight forward application without the need for solicitor involvement. Simpler, quicker, cheaper.

This was posted in Bdaily's Members' News section by Holme Finance Bridging Solutions .