BIZL supported a portfolio landlord in raising finance against a residential property converted without planning permission
We were recommended to a client by their accountant who was trying to assist them with their property portfolio. The client is an experienced property owner having built a portfolio of 40 residential properties over the last 30 years. Properties are owned in sole, joint and company names and are located across West and South West London. Properties tend to be developed, either being converted to Houses in Multiple Occupancy (HMOs) or multi-unit blocks, being split into a number of flats under one freehold title.
With plans to purchase more properties our client want to raise capital from one of his properties. However, the property in question had been converted from a house into 3 flats without planning permission, nor had our client obtained a Certificate of Lawfulness. This prevented most mainstream buy to let mortgage lenders from lending against the property.
With no time to obtain a Certificate of Lawfulness BIZL set about researching options via our extensive panel of lenders. We sourced a specialist lender who were able to proceed on the basis that the development works were undertaken 15 years ago. We were able to complete on the transaction releasing £400,000 to the client for further property purchases. Both the client as well as their accountant who referred them to us were delighted with the outcome.