This client had purchased a property at modern auction and committed a significant, 6 figure deposit which they stood to lose as the funds for this were coming from the sale of another BTL property, where the mortgage provider would not provide consent for a second charge mortgage. Therefore, a bridge was needed to rescue the deposit, and keep the purchase together.
A bridge was set up with a 1st charge on the purchase, and a unilateral notice on the BTL which was to be sold.
Regrettably, this was still not sufficient. Sirius asked for an asset & liabilities statement from the borrower, and noticed the client owned a piece of art which had a significant value. To allow the borrower to complete, Sirius arranged a separate asset loan against the work of art that allowed the borrower to raise sufficient funds for the deposit and stamp duty, and in turn prevent them losing any funds they had already committed.
The loans would be repaid via the sale of the BTL and a refinance of the new purchase once it was tenanted, with an AST which would remove the concern of the holiday let.
Sirius Property Finance or Sirius is a trading style of Sirius Property Finance Group Limited (company number 10132820) registered in England and Wales. Our Financial Services Register number is 813945. The registered address is; The HUB, Unit 7 Lake Meadows Business Park, Woodbrook Crescent, Billericay, Essex, CM12 0EQ. Sirius Property Finance Group Limited is an Appointed Representative of Bright Star Financial Limited also trading as Brightstar Financial or Brightstar (company number 07462342) registered in England and Wales. The registered address is; The HUB, Unit 7 Lake Meadows Business Park, Woodbrook Crescent, Billericay, Essex, CM12 0EQ. Bright Star Financial Limited is authorised and regulated by the Financial Conduct Authority. Their Financial Services Register number is 712700. You can check the Financial Services Register by visiting the FCA's website www.fca.org.uk/register or by contacting the FCA on 0800 111 6768.