Borrowers   |   Introducers

£183k Land Purchase For Business

May 2024

The situationLooking to purchase a portion of land to expand their growing business, the clients were looking for additional funds to support a potential ground-up venture. 

There were several complexities with this particular case as the clients’ current mortgage rate was a tasty 1.59%, which clearly they didn’t want to lose, yet they were unable to consider a Further Advance as many mortgage providers would not accept their loan purpose: business use. 

Despite their current advisers hands being somewhat tied here, wishing to support the clients’ goals, they referred the clients to TLP to ascertain if a second charge mortgage might be the right solution for the business. Experienced advisor Charlie was up for the challenge and quickly set out to find a suitable solution here.

Charlie Solomons The Loan Partnership

Our solutionCharlie started out with a quick chat with the clients. This allowed him to ask a few questions and fully understand the situation as well as discuss the ongoing plans for the business. 

From this, it was clear that not only securing the required funding would be important but the clients would need a clear exit strategy to ensure that the project maximised the clients’ investment long term. 

It was clear that a £183k second charge mortgage would provide the finance needed and would give the client the terms they required. With a LTV of 78%, Charlie contacted suitable lending partners that he knew would consider this case, and through his clear communication and the documentation provided to highlight all of the merits of the application, he was able to secure a very competitive deal on a 30 year term with Selina Finance. 

Keeping the client’s overall goals in mind, Charlie ensured that the clients have two routes of clearing the loan – via a remortgage in 2025 when the fixed rate ends or refinancing the new property once built. 

The clients were successfully able to purchase the land that they need and are now proceeding with the development. The mortgage introducer was also thrilled with the service and support that Charlie and the team were able to provide. 

The result Ultimately the clients were very happy at not having to pass on an important opportunity to realise a healthy margin on the build. The introducer was also happy to have not missed out on the opportunity to earn with this particular case by referring it to TLP. As with all referrals, the introducer received a 50/50 split of the commission.

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