At Hayes Finance, we specialise in the cases that others find too complicated. When a client came to us after being turned away by their existing broker and rejected by a high street lender, we were determined to find a way through. The case involved an unusual freehold arrangement and a need for speed, but with the right advice, a specialist lender, and a proactive team, we were able to secure the right result.
The Client’s Situation
Our client already owned the first-floor flat of a residential building and was now looking to purchase the ground floor flat beneath it. His goal was to secure full ownership of the building, which would give him greater long-term control, flexibility, and the opportunity to structure the property in a way that would make it more attractive for future lending or resale.
It was a smart move. However, the freehold structure created a number of legal and financial complexities that most lenders are simply not set up to deal with. To make things more complicated, the purchase needed to happen quickly. The seller had a tight timeframe, and the client needed a mortgage offer arranged and completed with minimal delay.
Unfortunately, the first broker the client approached was not able to resolve the issues. Their application was rejected by the lender due to the way the freehold was structured. That is when the client turned to Hayes Finance.
The Challenge
When a property has an unusual legal setup, lenders tend to take a very cautious view. Even if the borrower is financially sound, issues such as lease lengths, freehold ownership, or title arrangements can be enough to stop an application in its tracks.
In this case, the challenge was twofold. Not only did we need to find a lender that was comfortable with a freehold flat purchase and a more complex ownership structure, but we also had to move quickly to keep the deal alive. The seller was working to a strict timeline, and any delays could have resulted in the opportunity falling through entirely.
This was not a job for a high street lender. It was a specialist case, requiring specialist knowledge and a lender that understood the nuances of property ownership.
Our Solution
We began by advising the client that the purchase should be made through a Special Purpose Vehicle, known as an SPV. This is a limited company set up specifically for holding property. It is a common solution for complex or investment-based purchases, and it allowed us to take the freehold out of personal ownership and into a structure that made far more sense from a lending point of view.
Once the SPV was in place, we worked closely with the client and their solicitor to create a new lease structure. This helped divide the building in a way that was much more lender-friendly, making the legal title easier to understand and removing the barriers that had caused issues with the previous lender.
We then approached TML, a specialist lender with experience in dealing with these kinds of arrangements. With our support, they were able to assess the case quickly, understand the structure, and move towards issuing terms.
We secured the following:
- Borrowing of £350,000 on a purchase price of £475,000
- Loan to value of 75%
- Five year fixed rate at 4.86%
- Lending arranged through a new SPV with leases in place to support future planning
The result was a fully structured, professionally underwritten mortgage that gave the client both the ownership outcome and long-term stability they were looking for.
How We Managed the Process
A case like this only works when every moving part is managed with care. From the very beginning, our team stayed close to the detail. Kieran, Ed and Nicola were involved throughout, ensuring that no task was left to chance and no question went unanswered.
We worked not only with the lender, but also alongside the solicitor and the client’s accountant to make sure the SPV was structured properly and the legal paperwork met the lender’s requirements. Because of our experience with similar cases, we knew what questions would come up and we were able to stay ahead of the curve, avoiding unnecessary delays and removing uncertainty at every stage.
Nicola handled the ongoing documentation requirements and provided regular updates to the client, while Ed kept communication clear and timely, working closely with TML’s underwriting team to ensure a swift turnaround.
By the time the mortgage offer was issued, every box had been ticked and the client was in a position to proceed without any surprises.
The Outcome
✅ Offer secured quickly at 75% loan to value
✅ Complex freehold structure successfully resolved through lease creation and SPV
✅ Five year fixed rate offered long-term security
✅ High street rejection turned into a specialist solution with the right lender
“My wife and I thank all the team at Hayes Finance for a high standard of advice, which was always prompt, knowledgeable and reassuring at all times. We thank Kieran, Ed and Nicola for always being there for us at every step. We feel very lucky to have had such professional and caring help and we look forward to their guidance in the future.”
– Residential Mortgage Client
This case is a perfect example of what Hayes Finance is known for. When the high street says no, and even other brokers are unsure how to proceed, we step in and find the right path forward.
What This Means for You
If you are buying a property with a less-than-standard legal setup, or have been told your case is too complicated, do not give up. There is often a route to success, you just need a broker who knows where to look.
We specialise in unusual mortgage cases, complex ownership structures, and specialist lending. And just like this client, you will have a team who stays with you from start to finish, making sure nothing slips the net.
When the computer says no, give us a go.