Our client became aware of a flat for sale, the property had previously been on the market but the vendor wanted a quick sale so was advised to send it to auction. It failed to sell on the day and our client secured the property with a 10% deposit for the sum of £90,000. This purchase was the first investment property for our client.
When the property was valued, we did not disclose the purchase price, and we obtained a true market valuation of £120,000, allowing us to lend 90% of purchase price.
Our loan completed in September 2017 with an 8 month term, our client had a team of contractors ready to start works and had his own funds to complete the works.
Our client redeemed only 3 months later, and therefore benefitted from our discounted rate of 1.13%.
We are already in the process of lending to our client again and will continue to work with him in the future.