Case Study: Doing it for themselves

Our client was looking to buy the property she rented from her landlord, following buying into a veterinary practice. However, most lenders won’t accept Landlord-to-Tenant sales so she came to us for a solution.

Firstly, a lender must be sourced that will accept Landlord-to-Tenant sales. The next hurdle to sourcing a lender was client’s debt to income ratio. This was extremely high due to recently buying into the veterinary practice and taking out a personal loan. The debt to income ratio was around 202%.

We had to source a lender to fulfil the following criteria:

  • allow Landlord-to-Tenant sales
  • allow a high debt to income ratio;
  • ideally would not credit score the applicant;
  • ignore declining profits due to a percentage of the business being sold.

Our Solution

We were confident as ultimately the case was affordable, then the property was down valued due to some structural issues, adding to the hurdles to overcome.

Approaching most high street lenders would likely end in a no straight away. So, after searching the market, we found a lender that was able to meet the client’s needs and circumstances.

The Result

Due to our advice based on the findings in the valuation report, she managed to negotiate a much better purchase price with the client saving £9,500. These funds will be used to help with repairs to the property once she has completed the purchase.

Now our client has the security of a house, peace of mind for the next five years on their payments and she is no longer paying someone else’s mortgage.