Complex Circumstances Involving a Sale to a Family Member
Gross Loan Amount: £3,250,000
Market Value: £5,000,000
No Penalty for Early Repayment
We specialise in the complex, so when we were contacted by a broker about a sticky situation involving investment properties in South London, we couldn’t wait to get started.
The client was selling his property portfolio to a family member, however, there were some complex background circumstances that meant finance through traditional methods was not possible. The properties were to be purchased at full market value, with equity being gifted. There was also some adverse credit involved.
Our underwriters are always keen to follow our stringent in house processes, regardless of a family connection – however, they were able to adapt this time to make the process slightly simpler for the end borrower. The transaction also had to be completed quickly.
All information had to be passed through not only the solicitors but also the trustees, to confirm the acceptance by both parties. As the process was ongoing during the lockdown period, this added a rather unusual layer for our team to consider.
Due to the rules of social distancing, the solicitors were not only having to work remotely, but also with half of their staff on furlough. This had the potential to impact the case dramatically, by adding additional time until completion. However, our underwriters carefully considered how they could adapt our process to proceed in a way that was tailored to the complexity of the case and take into account the lockdown.
Focusing on simplicity and communication, they created a set chain in which documents could be sent in bulk, whilst maintaining client privacy and security. This meant that all information could be passed from ourselves, to the solicitors to the trustees smoothly. By layering the documents in this way, it also became easy to distinguish any issues and ensure that nothing was missed.
Flexibility – Due to the clients unusually complex situation, our underwriters focused on tailoring the loan, and the process, around the individual’s personal circumstances.
Expertise – With solicitors working remotely and understaffed, we had to find the best solution for all parties. Using our industry knowledge, we found the smoothest solution that ensured the client’s needs were met and obtained the best results, without overwhelming the solicitors.
Furthermore, once again focusing on the complexity of this case, our underwriters used their industry knowledge and expertise to ensure that the due diligence, KYC and all other processes were completed upfront and clearly, due to the adverse credit linked with one member of the client group.
Simplicity – By using a layered approach, the process became a simple chain that linked all parties, and made it is easy to complete the transaction with minimal stress.