Question
When a buyer has secured a genuine discount against OMV (eg buying in bulk from the Official Receiver) which lenders will lend the highest LTV against OMV as opposed to purchase price - without requiring additional security?
Answer
Response from B&C Bridge Doctor Alan Margolis, Head of Bridging at United Trust Bank.
We would look very carefully at every case where a potential borrower advises that they have bought at a discount. Put simply, the reason proffered has to make sense and be substantiated by a valuation.
But take now as an example someone who buys say 5 flats in a block at a "discount" and wants to use all 5 flats as security. The problem here is that if the loan goes wrong and the lender has to repossess, they will be looking to sell 5 flats at once and also likely to have to offer the same "discount" to sell the properties.
Question
Is it possible to avoid paying valuation fees on a high value property £1,000,000 and a low LTV - 25%
Answer
No matter what the LTV is - it is a necessary requirement to pay a valuation fee.
But in some cases a valuer will look at a reduced fee based on the LTV being lower.
Question
I have been asked to arrange a commercial mortgage for an overseas non EU client for property in Scotland or England. Does anyone lend to such a client & if yes what will be the max LTV?
Answer
I would say an LTV of 70% gross with a personal guarantee from a UK resident and 60% without the guarantee. This is based on a bridging loan and it would have retained interest.
Question
I have client in the South East who wishes to build an office in his large garden to accommodate 4 staff (3 family and 1 external) - needs 70K.The main residence is subject to negative equity.The professional practice currently operates from a room within the main house - which is totally inadequate.However, the practice itself is expanding.Who will be prepared to provide the cost of building the office and fitting it out with fixtures/office equipment?Can you suggest a Lender for the
Answer
As it stands you would be unable to secure a loan because the residence is subject to negative equity and cannot be used as security. If you were able to put forward alternative security you may have a chance to secure finance.
Question
Having arranged a 1st charge of 1.35m with Nwide commercial i need a 2nd charge - at least 80k - takes it just over 60% LTV - property is in grenwich....Any suggestions welcome?
Answer
Unfortunately there is a gluttony of unsold flats in Canary Wharf. This will make any lender nervous and as a result Loan To Values will typically be reduced, especially if you are asked to come in as a second charge!
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