DMI Finance Company Director Wayne Gray was approached at a Clive Emson Maidstone auction by a client who had just placed the winning bid on a Commercial Property in Kent. The clock had started ticking and, contrary to the client’s initial thoughts that a Bridging Loan was his only option, we were confident that a long-term Commercial Mortgage could be put in place, saving the client thousands of pounds in interest payments and fees.
DMI Finance researched the market and found a lender we believed could complete within the timescales required and subsequently submitted an application to Shawbrook Bank.
Maintaining direct contact with the decision makers at Shawbrook Bank throughout the application process, DMI Finance ensured that they were able to complete an auction purchase on a Commercial Mortgage product and complete within 30 days of the offer being accepted on the property.
The commercial property consisted of two retail units in a busy town centre. The units were both let with five and seven years remaining on their current leases and had six flats above, let out on AST agreements.
The client already had a portfolio consisting of a good mix of different properties that were low geared with a good outside income stream. With the addition of the strong rental income from the proposed purchase, Shawbrook Bank were happy to proceed to Indicative Mortgage Offer within 24 hours on a 10 year interest only basis.
The property was valued five days later confirming a good demand and a higher valuation than the purchase price. With the flats alone providing strong rental cover against stress testing, Shawbrook Bank were comfortable with the strength of the deal and the profile of the client, meaning they were able to proceed to formal offer a mere eight days later.
Due to the quick completion date, solicitors were instructed prior to the offer being released. (As this was a purchase, the clients were required to have their own legal representation.)
Shawbrook Bank’s in-house conveyancing firm found that there was an issue with part of the land included within the drawings, and consequently had to arrange for a transfer of land before they were able to register the title. This added some pressure due to the timescales involved, however DMI Finance and our dedicated Lending Officer at Shawbrook Bank worked closely together with all other parties to ensure deadlines were met.
The transfer of land came through on the same day as completion with the case taking just 22 working days from application to completion – 8 days inside the timescales we were working towards.
