Signature secures speedy finance deal to save client thousands in Stamp Duty
Signature was able to instruct a valuer from across its wide-reaching contact base to attend site at only a day’s notice, with the valuer in turn delivering the required documentation two days from legal instruction on 30th June, saving the client £32,500.
Bobby Paul of Abundant Finance “Completing this deal was going to be an uphill battle for anyone given the tight timescales involved and the sheer amount of legal documentation that was still outstanding when the client approached me. However, I was confident that if anyone could deliver under these circumstances, it was the team at Signature. Over the years, Signature has proved itself to be a thorough and diligent operation. The team there doesn’t shy away from challenges like this because amongst their ranks they have the knowledge and experience that can get even the trickiest of deals over the line.”
The safe hands at Signature Property Finance stepped in to secure a swift resolution to a sizeable property deal, saving an investor thousands of pounds in fees when it appeared that the deal couldn’t be completed before the Government’s Stamp Duty holiday expired.
The seasoned property investor in question had undertaken a complete refurbishment of a three-bedroomed detached property in their portfolio after purchasing it in March 2021, before placing it back on the market and immediately achieving a resale STC in May.
Approximately £300k from the sale had been earmarked to assist the client in completing on a larger residential property in her own name, however, as the months moved on since the resale was agreed delays in conveyancing cast doubt upon whether the chain on the new house could complete before the end of June, when the assistance with Stamp Duty fees was due to be withdrawn.
As the residential property was being acquired for approximately £900k, a Stamp Duty bill of £32,500 awaited the client if the purchase could not be completed before the cut-off date, leaving them in somewhat of a predicament.
Bobby Paul of Abundant Finance, a long-standing contact of Signature, approached our specialist team with a view to securing a bridging loan against the value of the investment property in order that the purchase on the new £900k home could go ahead in time.
Paul commented: “Completing this deal was going to be an uphill battle for anyone given the tight timescales involved and the sheer amount of legal documentation that was still outstanding when the client approached me. However, I was confident that if anyone could deliver under these circumstances, it was the team at Signature. Over the years, Signature has proved itself to be a thorough and diligent operation. The team there doesn’t shy away from challenges like this because amongst their ranks they have the knowledge and experience that can get even the trickiest of deals over the line.”
What were the barriers to completing the deal?
Signature prides itself on finding solutions to complex situations thanks to customer-focussed culture, and in-house legal provision which works to streamline the lending process by removing the need for the input of additional personnel. This became a crucial factor in the completion of this deal when upon further investigation, a number additional challenges which could derail the whole scheme became apparent.
Having received the initial application 17th June, the first hurdle for Signature to cross was finding a valuer to inspect and report back in plenty of time to complete before the month end. Furthermore, whilst working to secure the valuation, it was evident that the initial three-bed investment property which was purchased back in March was still not yet showing on the Land Registry, meaning the client would be unable to use it as collateral for the loan.
Despite this Signature was able to instruct a valuer from across its wide-reaching contact base to attend site at only a day’s notice, with the valuer in turn delivering the required documentation by 28th June.
How did having in-house legal representation help?
During this time, Tom Howells, Legal Director at Signature, produced the facility letter and legal pack for immediate issue upon receipt of the valuation, whilst simultaneously working to resolve the matter with the Land Registry title, which was eventually issued on 29th June, just one day before the deadline day for completion.
Howells explained: “The purpose behind my role in-house at Signature is to smooth the wheels of often complex property deals, and to give clients the piece of mind that our business is able to deliver its promises, on time, without any unnecessary delays with legal processes.
“Deals are rarely straightforward, and time is often of the essence, which was certainly the case in this instance. But because we were able to agree reasonable terms and work swiftly to compile all the essential legal documentation and iron out the potential stumbling blocks, we were able to complete on target. Funds were drawn down two days from legal instruction on 30th June, saving the client £32,500.”
"The purpose behind my role in-house at Signature is to smooth the wheels of often complex property deals, and to give clients the piece of mind that our business is able to deliver its promises, on time, without any unnecessary delays with legal processes.
Deals are rarely straightforward, and time is often of the essence, which was certainly the case in this instance. But because we were able to agree reasonable terms and work swiftly to compile all the essential legal documentation and iron out the potential stumbling blocks, we were able to complete on target. Funds were drawn down two days from legal instruction on 30th June, saving the client £32,500.”
Tom Howells – Legal Director at Signature Private Finance