Lancashire Mortgage Corporation has helped a client save a legacy as well as increasing an asset value.
The specialist lender, which is part of the Blemain Group, provided a short-term loan facility of £500,000 to allow a client to clear a tax bill in just 10 days.
The funding was required in order to clear a HMRC debt inherited from his late father and secured against the property left to him, which consisted of a large six-bedroom detached dwelling with five acres of land. The applicant had already placed the property on the market with agents for a price of £1.1 million. He was keen to keep control of his asset but only had 10 days to clear the tax bill.
Lancashire Mortgage Corporation worked with the legal team at Priority Law to meet the deadlines and provided short-term finance to clear the debt. The applicant then split the property into two lots, obtaining new titles for both, with planning permission for a small-scale development on the land.
Following these changes, he obtained valuations of £1 million on the property and £875,000 on the land for development, a total increase of £775,000 on his asset value.
The land was sold to a housing developer and using the money from the sale, the client was able to repay the loan in full after eight months, two thirds of the timeframe initially agreed.
Jamie Jolly (pictured), commercial relationship manager at Lancashire Mortgage Corporation, said: “This is a great example how short-term finance can deliver long-term solutions. Lancashire Mortgage Corporation’s network of professional partners worked closely together to deliver outstanding results against incredibly tight deadlines.
“The client retained full control of his asset and increased the commercial value by 70%, thanks to a short-term bridging loan which he was able to pay off within two-thirds of the timeframe initially agreed.”