Quirky remortgage with additional borrowing
Arranging a remortgage with additional borrowing is situation we help with quite frequently. Some of the more common reasons why people need to borrow more money on their mortgage are:
- Home improvements – new kitchen, bathroom, maybe an extension etc
- Funds to use as a deposit if wanting to buy a rental property
- Debt consolidation – paying off loans, credit cards and store cards that may have high interest rates
- Needing money to buy a business
- Buying some land
- Extending the lease on a leasehold property
Capital raising remortgage for a lease extension
Niche remortgage - complex situation
So, what did we do?
The Solution - additional borrowing remortgage
Enter Fifty Nine Financial!
We found a mortgage lender that would allow the client to remortgage and take additional borrowing to cover the costs of extending the lease. The quirky part was have to negotiate with the lender because the existing 54 year lease term did not fit with their lending criteria when it comes to new mortgage applications.
Throughout conversations with the lender, we were able to establish a position where the lender would except the application. This was on the basis that there is to be a simultaneous completion, whereby the lender allows the client to take the additional borrowing on the condition that they extend the lease on the day that the mortgage completes. That way, the lender is actually lending against a property with a 144 year lease, not 54 years. In the end, this was the scenario we needed and, although it was far from straightforward, we were able to secure a mortgage offer for this client so she will have the funds required to extend the lease.
As mentioned above, there are many times when additional borrowing may be required on a remortgage. We can often find a solution where others can’t.