Fast mortgage offer for family buying property with increase in value Overage Clause

Trinity Financial's broker recently arranged an overage clause mortgage for a family buying a property in Surrey. They had found a great house with land to buy, but the clause stated that any works that increased the value would require a significant fee to be paid to the current owner. 

Who did you arrange a mortgage for?

A three-person application between husband, wife and their adult child.

What did they want to do for a living?

Each had different job roles, including the property and education sectors.

Did they have a complex situation? And what was the Overage Clause? 

The complexity surrounded the property itself, having an Overage Clause attached to the legal titles. The exact wording was as follows: “The Property will be subject to Overage. If the Buyer or subsequent owners obtain planning permission for additional residential units during the next 25 years 50% of the uplift in value will be payable to the Seller.”

Why did they need Trinity's help?

A lender had already declined them via a previous broker because the Overage Clause was unacceptable given the potential resaleability issues. They needed to get the mortgage agreed swiftly because they really wanted the property. They also wanted three names on the mortgage using three incomes.

Did we struggle to find a lender?  

After assessing the mortgage market and checking their lenders, we have access to those who are happy with overage clauses. Our broker returned to their clients with a recommendation to apply to a large bank with a track record of issuing fast mortgages and competitively priced rates.

Other lenders were limited, as the Overage directly affected how the lender would recoup funds in a repossession. However, having discussed with our contact at a large bank, they confirm they could accept the application, subject to a satisfactory property valuation.

The bank was also happy with three names on the application using the three incomes.

Was the rate particularly good? 

Excellent interest rate from a large bank. The rate was a sub-4% five-year fix with a £999 fee and a10% overpayment facility each year. 

Where did they get your details from?

They had found our website and called in.

Lending solutions with Trinity Financial

Are you looking to buy a property and require expert advice? We’re here to help you find a solution – no matter how complex your circumstances. Our expert brokers have extensive experience providing creative solutions to secure mortgages for our clients.

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage