Ahead of tomorrows Auction, our Auction Partner Together have prepared an article that highlights the good work they do on behalf of our cleints.
Specialist lender Together agreed a loan to save a customer £20,000 by funding the purchase of a former bank, after she was let down at the last minute just days before completion.
Property investor Manisha Avhad and her husband Bhausaheb were delighted after snapping up the £200,000 former Yorkshire Bank at auction.
But their plans to develop the property into five two-bedroom flats looked doomed when they were let down by their finance provider, five days before the final payment was due. Failure to meet the deadline would have cost the couple their £20,000 deposit.
Mrs Avhad said: “It was a really stressful time for us both. We felt really let down and were so concerned that our finance wouldn’t be in place. The deadline was looming and it looked like we could lose the chance to develop this property, as well as losing the deposit we’d already paid.”
The first finance company pulled the plug because of complications, including the ‘non-standard’ building already having a tenant, despite it standing empty. I was also unable to lend the total funds needed to complete the purchase.
The Auction referred the couple to Together, knowing that they take a common sense approach and can react quickly.
After reviewing the case – and following a visit to the site – the specialist lender agreed to provide £134,000 needed with a loan-to-value of 67 per cent. The finance was transferred within the five days, ensuring Mrs Avhad met the deadline to buy the bank and retained her full deposit.
Mrs Avhad continued: “This was such a great result for us. We are really pleased that we managed to secure the finance we needed to put us firmly back on track.”
The loan was for a 12-month term, with the plan to repay the loan in full when the property was remortgaged following refurbishment.
Together Director Scott Hendry, who arranged the loan, said: “We put Mrs Avhad’s mind at rest and provided the funds in time, meaning she saved thousands of pounds she had already paid and could complete the purchase and press ahead with her ambitious plans to redevelop the property, which is in excellent condition.
“There were some complexities, such as the existing tenancy, but there was already a plan in place whereby the tenant would give that up, so it wasn’t a setback for us. Plus, Mrs Avhad is already in discussions with the local planners over permission to convert the former bank into flats, which will be a sound investment.”
Together is a specialist auction finance provider and attends around 300 property auctions each year.