Nicolas wanted to buy a cottage in the South Hams of Devon, which would be used immediately as a holiday let, with occasional use by the family during the school holidays. The longer term plan was to relocate to Devon when Nicolas had decided to stop living and working in the City.
Going down to Devon at the weekends, Nicolas soon struck up a rapport with a helpful Estate Agent in Kingsbridge, who was good enough to keep an eye out for a suitable property. Over the next three months, Nicolas spent most of his weekends on the M4/M5, going down to view various properties. The first half a dozen did not quite meet his expectations for the future. Then, one Friday afternoon, he got the call he had longed for; the agent had a new instruction- a rare and totally refurbished fisherman’s cottage in Hope Cove.
A full asking price offer of £485,000 was put forward immediately, and duly accepted.
Nicolas had access to a 30% deposit, therefore needing to finance the balance of £339,500. Initially, he had approached a small building society with the proposition and received a favourable response. He paid over a £700 valuation fee, so that the security could be assessed. The lender asked him to provide a letter from a holiday letting agent, giving an estimate of holiday rental over a twelve month period.
This building society very quickly came back with an offer of a reduced loan, stating that the property would not self-fund within its rules.
After all the effort that Nicolas had put in to secure the property, he could see his dream slipping away. Fortunately, Nicolas quickly found us and explained his predicament.
We approached a more flexible lender that has a “special situations product” available. This product uses a combination of rental and personal income to determine the maximum loan facility available and consequently the lending facility was quickly approved Nicolas is now enjoying his dream of Holiday Let/Home ownership.