Dual Property Acquisition Funded on Market Value

The Requirement:

Our client was purchasing two adjacent properties in Lincoln under option agreements and asked us to arrange funding for both. The key requirements were to:

• Secure lending against market value (MV) rather than purchase price on day one, due to the structure of the option agreements.
• Complete both purchases simultaneously under a single contract, while each asset sat on a separate title.
• Ensure a specific part of one property was excluded from the lender’s security, as the client wished to retain that element unencumbered.

About The Properties:

The transaction involved two linked but distinct assets:

• Property 1 – £215,000 facility:
  – A semi-commercial building with residential uppers.
  – An area to the rear was deliberately excluded from the lender’s security, to be retained outside the charge.
• Property 2 – £170,000 facility:
  – A 5-bedroom HMO.

Both purchases were governed by the same overall purchase contract, but sat on different titles and required separate facilities, all completing on the same day.

How we helped:

We structured and coordinated the funding to reflect the legal and commercial complexity:

• Sourced a lender willing and able to lend against MV rather than PP on day one, recognising the uplift inherent in the option arrangements.
• Arranged two separate facilities (£215k and £170k), aligned to the two titles but timed to complete simultaneously in line with the single purchase contract.
• Worked with solicitors and the lender to carve out and exclude the rear element of the semi-commercial property from the security, ensuring the client could retain that part outside the charge.

By managing both loans with one lender, we simplified execution, avoided misalignment in timing, and ensured the overall structure matched the client’s commercial objectives.

The Outcome:

• Enabled the client to start the process before planning was determined, while still benefiting from the uplift once approval was granted.
• Aligned the borrowing with the enhanced value and income profile of the completed 7 bed HMO, delivering a long term funding solution tailored to the client’s strategy.