Navigating the complexities of Let-to-Buy and Joint Borrower Sole Proprietor mortgages can be challenging, but Diamond Property Finance’s expertise in this area ensures successful outcomes. Recently, we assisted a family of four in achieving their goal of upsizing by letting out their current property and purchasing a larger home.
Case Profile:
The parents planned to convert their property to a Let-to-buy (LTB), before extracting the funds to put down as a deposit on a new purchase. This purchase was then to be a Joint Borrower Sole Proprietor (JBSP) mortgage with the father and their adult child who had recently qualified as a solicitor. The reason for this was because their income was higher than one of the parent’s, therefore aiding the affordability. We also opted for a JBSP in case their child wanted to purchase a property in their name further down the line.
The LTB property was valued at £500,000 with the parents looking for a 75% LTV mortgage. The new property’s purchase price was just over £600,000, with the family hoping to secure just over 50% LTV.
Solution:
The LTB mortgage was reasonably straightforward, but we wanted to keep the monthly costs low so finding the right lender was important. In contrast, the new purchase was trickier as at the time of the application, their child had only just signed their new working contract and therefore could not provide payslips to prove income. Additionally, we wanted a JBSP mortgage whereby both applicants would be living in the property.
To fully understand the dynamics of this case, we had a meeting with all members of the family and worked with lenders who we knew could assist with the challenges we faced. We presented the lack of income proof to lenders who we believed would consider the complexities of this case whilst operating in the JBSP space.
By leaning on over 8 years of residential mortgage experience, we put together a comprehensive application and worked closely with the lenders to negotiate a solution for the family.
With hard work and determination, we successfully secured the full funding amount for the clients on a JBSP basis. It was a repayment mortgage stretched up to the parent’s 80th birthday which keeps the payments affordable.
The clients can now rent out their current home and use this as their pension, whilst enjoying their new family home.cessful transactions in the future.
