How to handle difficult borrower circumstances

“How to handle difficult borrower circumstances”

written by on 22/10/2013

The key here was, first of all to grasp, and then to present a convincing view of the property's value when it had been conveyed from wife to husband as repayment for an accumulation of loans and gifts over an extended period of time and as a device to equalize estates in order to mitigate the impact of Inheritance Tax.
In the circumstances the property had been conveyed without identifiable 'consideration' and constituted a 'gift'. Although not directly relevant to the value of the property as security against a mortgage of only 35% of market value, the absence of simulataneous exchange on legal title and consideration can be an unsettling factor for some underwriters.
It requires a comprehensive understanding of lenders' individual hang-ups concerning risk and requirements for proof. It is a market that has swung from virtual 'carte-blanche', barely underwritten lending to one of excessive caution high resistance to anything in the least bit out of the ordinary.
Turnkey Landlord does all of this very well _ I congratulate them!