Case Study – July 2024

Our client contacted us looking to remortgage three individual flats, which were owned by the same entity (the clients SPV) for both the freehold and the leasehold. Our client was looking to recycle funds from this unencumbered property for onward Buy-To-Let purchases, and to grow their portfolio.

We were able to source a multiple property mortgage option with Aldermore bank, with a 5-year fixed, interest only repayment product. The product sourced also had some incentives, including free valuation, and free legals. Our client benefited from these incentives, as the reduction in upfront costs allowed them to fully utilise the refinance funds for onward purchases.

The multi-property product was a great option for this case, as it resulted in only one product fee being payable, rather than three if the flats were refinanced individually. Currently Aldermore product has since evolved as is now completely fee-free, we particularly find this suitable for property portfolio mortgages.

The application with Aldermore progressed smoothly throughout the case. The underwriting team requested the majority of the documents upfront, meaning that we were able to request these from the client at the beginning of the process. We were in regular contact with the underwriting team throughout the process to ensure that the case was progressing as expected.

The valuation of the property was instructed quickly by Aldermore, with a date confirmed directly with our client. Unfortunately, the property was slightly down valued during the process, however, Aldermore did provide us with this update as soon as they received the report from the valuer. Aldermore also provided us with an updated illustration document, which provided the updated lending terms based on the new figures. We were able to provide this document directly to our client, meaning that they were informed of the developments of their case and had all the information to hand.

After the valuation report was returned, the underwriter requested some further documentation from our client which we were able to provide quickly. Following these documents being reviewed by the underwriter, the case soon moved to offer stage.

Aldermore issued us an offer letter, which detailed all the essential property details, details of the loan, and the repayment schedule, as well as the post-completion requirements for the client. We provided a copy to our client for their records.

As our client selected to utilise the free legals incentive included in the product, Aldermore’s solicitors, Blacks LLP, were soon in contact with our client to complete the post completion requirements. Mortgage Lane were included in this correspondence, which insured that we were able to ensure that the completion stage was progressing successfully. As we were included in the email correspondence, we were able to assist the client by providing requested documentation that we already had on file.

Following all essential documentation being provided to the solicitors, we were in contact with them directly to establish a completion date for the property. We were in regular contact with the firm to ensure that we were on track to complete on the confirmed date.

On the completion date, we contacted the solicitor to confirm that the completion had gone ahead and were in contact with our client to confirm that the funds had been released.

Our client is now able to utilise these funds from the refinance to develop and grow their portfolio.

We look forward to working with our client again in the future.