Somo has completed a £400,000 bridging loan after finding a solution to a planning issue that threatened to delay a landlord’s property portfolio expansion.
The lender provided a six-month Low Rate Plus facility at 70% loan-to-value, secured against three semi-detached buy-to-let properties in south Manchester.
During the underwriting process, a valuation identified that one of the properties had previously been converted into two self-contained flats without evidence of the required planning consent.
Rather than requesting additional security or delaying completion while alternative valuations were obtained, Somo’s underwriting team worked with the valuer and legal representatives to assess the circumstances and put appropriate legal protections in place, including an indemnity policy.
The approach allowed the lender to proceed using the original security package while maintaining its underwriting standards and ensuring the transaction remained compliant.
The borrower was subsequently able to complete their onward property purchases on schedule and continue expanding their portfolio.
Joe Cash (pictured), senior underwriter at Somo, says: “Not every property transaction fits neatly into a standard lending policy.
“Our role is to understand the whole picture and assess each case on its individual merits, we call this our 360Promise.
“By working collaboratively with the valuer and solicitors, we were able to structure a solution that appropriately managed the risk while helping the borrower meet a critical deadline.”
Somo says it regularly supports brokers with cases involving historic planning matters, title issues and other property-specific challenges that arise during underwriting, taking a case-by-case approach to help transactions progress while maintaining responsible lending.
