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The Client’s Situation
The client owned a multi-unit freehold block of flats (4 units converted from two semi-detached houses) within their wider investment portfolio. Their portfolio property business had already been incorporated into a limited company, but the legal land titles still remained in the name of a partnership. The client wanted to transfer ownership fully into the limited company once the early-repayment charges on the existing mortgages expired.
The Challenge
Although the property was straightforward in terms of unit size and location (all units over 35 sqm in a standard residential area), the key challenge was that many lenders refused to consider the case because a beneficial sale to the limited company had already taken place (prior to the legal title being transferred). The task was to source a lender that would accept the beneficial sale had occurred and proceed with the legal title transfer to the limited company.
Our Solution
We submitted a full case referral including the business sale agreement and accountant letters to demonstrate the legitimacy of the company structure. A leading lender in the market agreed to proceed. We instructed the valuation on day one and satisfied all lender requirements. After underwriting sign-off, the mortgage offer was issued with relatively smooth process.
The Result
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Property valuation: £1,750,000
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Loan amount secured: £1,225,000 (70 % loan to value)
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Fixed rate: 5-year term at 3.05%
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Arrangement fee: £2,495 (approx. 0.2 % of the loan)
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Added benefit: commercial valuation fee waived, plus £750 cashback on completion
Client Feedback
“Having financed quite a few properties with Advocate Finance prior to my incorporation, I have recently dealt with Henry who was very knowledgeable on moving 2 houses arranged as 4 flats from the partnership into our new limited company. Without Advocate Finance’s years of experience dealing with different companies and different property transactions, it would have been a difficult process. The lender recommended was the best company that had the best products available for a Ltd company incorporation”
How We Can Help You
If you are transferring properties into a limited company, refinancing a multi-unit block of flats, or looking for a lender experienced with legal title transfers and portfolio structuring, Advocate Finance can support you with access to specialist lenders, tailored structuring and market-leading terms.
