Together and Positive Lending have funded a £500,000 second charge mortgage for a self-employed client to buy a neighbour’s plot of land.

The customer, a self-employed company director, had changed his business from a limited liability partnership (LLP) to a limited company following advice from his accountant.

Together stated that the customer had wanted to buy the land, which backs onto his own property, from his neighbours, who were moving home, to prevent it being snapped up by developers.

However, the change in the customer’s company’s status, coupled with the loan purpose, meant the finance he wanted was unavailable from high street lenders.

After being approached with the complex case, Positive turned to Together, and the specialist lender agreed the £500,000, interest-only second charge loan at just over 50% LTV. The borrower plans to repay the loan by downsizing in the future.

Commenting on the case, personal finance head of intermediary sales at Together, James Briggs, said: “Over the past six months, we’ve seen a number of cases where clients have wanted to buy plots of land next to their homes to stave off unwanted future developments, as was the case here.

“However, because of the complexities of this case, including the fact he’d recently changed from an LLP to a limited company and the relatively large loan size, it was proving difficult to raise the finance. Our specialist underwriters worked with Positive to come up with an innovative solution and were able to provide an offer quickly to meet his neighbours’ deadline.”

Positive Lending CEO, Paul McGonigle, added: “Many other lenders would have been deterred from providing a half a million pound second charge loan because of the recent change in the client’s employment status.

“We were able to look at all aspects of the case, and all parties – us as a second charge mortgage specialist, the respective valuer and Together – worked in partnership to provide the client with the best possible outcome.”

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