served a notice to complete, SE1
client’s circumstances
Clients had exchanged contracts in 2013 to purchase an investment asset in Southwark, London, off-plan from a developer for £836,000. As the development reached practical completion a Notice to Complete was served by the developer, with a strict time clause requiring completion within 10 days, failing which the deposit would be forfeited and the developer would be free to sell the newly completed property at a higher value on the open market. Due to the time-sensitive nature of the loan, the applicants were unable to secure a BTL mortgage. Faced with roughly a week within to complete the purchase the applicants approached MT Finance.
MT Finance solution
On receipt of the enquiry we were able to give an immediate decision, and issued the offer of loan that day. Our team worked around the clock to organise the valuation and ensured all the legal formalities were addressed. With 2 days to spare, we provided a £480,000 short-term loan based on an open market value of £836,000, with no exit fee or early redemption penalty.
the benefits
We managed not only to save the borrowers from losing the apartment, but equally losing their £50,000 deposit and by taking out the short-term loan, the applicants were given the time and breathing space to obtain a buy-to-let mortgage at the right level.
