Recent missed mortgage payments / BTL refinance / Layered company

Refinancing but missed mortgage payments, plus a complex company structure!

The challenge

Our client wanted to refinance 2 buy to lets having finished his development of 7 houses and sold 5 of them.

• Layered company (Ltd Co in turn owned by multiple Ltd Co’s and multiple individuals).
• Main director and shareholder has recent missed mortgage payments in his BTL portfolio.
• Class A shares were voting shares, and completely different to the Class B non-voting, dividend shareholdings.

The solution

We identified a lender who was ok with how the company was layered, but also discussed the missed payments of the main individual.

• Sat down with all counterparties (and with the client taking the appropriate legal and tax advice), it was agreed that the structure of the class A shares could change, whilst keeping the class B shares the same, and him being replaced as a director.
• This removed the need for him to be involved with the application entirely, yet his dividend shareholdings remained the same. The lender was then happy he was no longer in charge!
• All the above gave the lender comfort with the structure, as well as the borrowers themselves, and the clients came away with capital raised funds to invest in further development projects.

After thought

We see a lot of very complex deals regularly, and we know how to structure them to keep all parties happy to ensure the best chance of success. If you have any

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David was absolutely amazing, from helping us find the right mortgage, to advising us, to being on hand for silly questions we had. Nothing was too much trouble for him. I will absolutely be recommending him to our friends.

Frederica Turner