Some clients were buying a large property in London that had been converted into three flats. Two of the flats needed complete renovation, and one had a long-term sitting tenant in occupation.

All three flats were on one freehold, and the overall situation meant that the property was unmortgageable without going for commercial finance.

We suggested that the clients separate the title into three long leasehold flats while carrying out the refurbishment, and put the freehold into a separate company. We then arranged a buy-to-let mortgage on one flat in one client’s name, and a buy-to-let mortgage on another flat in the other client’s name.

This allowed them to pull out all of their purchase and works costs, and left the flat with the sitting tenant unencumbered. Even with the sitting tenant, the third flat proved extremely valuable as security for bridging finance for other projects.

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