"A couple aged 52 and 50, have operated a Café/Restaurant for some 12 years and own the property involved unencumbered, which is estimated to be worth £500,000. A flat above produces £895 per month, while the accounts for the Café show a net profit of £8,000 per annum. The Clients want to raise £150,000 against this, to enable them to purchase more property. They have already talked to their own Bank and one other and were declined for lack of serviceability. What can you practically suggest?"
Green shoots of recovery. Really
When is criteria not the critiera?
Has the house come down on the development market?
The Commercial Surgery June'09
ANSWER:
Total earnings would appear to be £18,740 per annum, which virtually any full status lender would deem inadequate to meet the cost of any new loan at £150,000 in addition to the Clients’ routine living expenses. A Self-Cert approach could be considered, however if the Clients can provide a full Asset & Liability statement in addition to a full explanation of what is to be purchased, it is possible to access a near full status solution in terms of both set up costs and rate.
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