Client’s circumstances: A client was looking to raise funds to extend a lease on an existing property and put down a deposit on an additional investment property. The client had struggled to get financing from a majority of lenders as there was a short timeframe of seven years left on the lease.
MTF solution: MTF provided a £650,000, 12-month bridging loan, based on an open market value of £1 million. The process to extend the lease then commenced, with further funds provided during the term so the client could purchase a long lease and increase the value of the property.
The benefits: By extending the lease the client was able to secure a long term buy-to-let (BTL) mortgage. The client was also able to purchase the additional investment flat.