Roma Finance resolves family feud with buyout bridge
- Borrower’s father bought residential investment property from his father who fled abroad with £500k
- Borrower’s father left with a £300k mortgage and realised property didn’t have planning permission for residential use
- A sale was agreed at £380k without residential planning but fell through because the bank refused to give a redemption figure as their mortgage book was being sold
- Father stopped paying mortgage, the bank froze his accounts and he was declared bankrupt
- Following a super compliant which went to the Bank’s CEO, an agreement was reached for a sale to proceed at £135k with no further obligations
- Roma Finance met the borrower and quickly agreed a bridging loan for £120k over 6 months
Roma Finance, the Manchester-based specialist bridging lender, were able to resolve a difficult and complex case involving three generations of a family and a dispute with a major UK clearing bank lasting several years.
The case was introduced by John Waddicker at Positive Bridging Finance. Previously other lenders had not been able to assist the family, but Roma Finance agreed to take a closer look to see if they could help.
It all started with the borrower’ grandfather selling his son, the borrower’s father, a residential investment property for £500,000 in 2006. The son, believing there would be no issues with the purchase, didn’t carry out any searches and took out a mortgage with a major UK clearing bank for £300,000. Almost immediately after the sale went through, the grandfather disappeared, leaving our borrower’s father with a property which didn’t have planning consent for residential occupation.
After several years of trying unsuccessfully to sort out the planning, our borrowers’ father agreed a sale without planning for £380,000. However, the sale fell through because the bank refused to provide a redemption figure as they were trying to sell their loan book to another major UK bank. The father, by now completely disgruntled stopped paying his mortgage. In response, his bank account was frozen which resulted in him eventually becoming bankrupt.