A typical scenario, and what we could deliver – self-employed…and looking ahead to the future

Download Scenario; Self-employed…and looking ahead to the future as a PDF

WHO’S THE CUSTOMER?
A successful professional who owned and ran a business with his wife. He was going through a divorce settlement and looking to purchase his wife’s 50% share of the business. He had found a new property he wanted to purchase.

WHAT’S THEIR SITUATION?
Due to the divorce and the process involved in purchasing his wife’s shares, the company had recorded a loss in its accounts. This was only down to the finances drawn needed to complete the purchase to become the 100% sole owner of the business.

The company continued to trade strongly as normal during this period, reporting healthy financial results and a forecast which would indicate a secure future.

WHAT PROBLEMS EXIST?
The customer is unable to obtain a mortgage from a high street lender due to the large decrease shown on the company accounts, due to the purchase being made. Lenders were not willing to accept this as the sole reason for the loss in the accounts.

They weren’t looking to the future and its forecast that the company is maintaining and developing its growth and delivering strong financial results. Therefore many lenders declined the opportunity to provide a mortgage for his desired property.

HERE’S HOW WE COULD HELP…
We pride ourselves on individually assessing and approaching applications. We take a flexible view on merits of all cases. We would look at the company accounts and its growth and strong financial results, seeing that the purchase of his wife’s shares is the sole reason of reporting a loss.

We would analyse and conclude that the business will continue to grow and the income of the customer has increased due to the sole ownership. We would be able to lend against this increased income and deliver what the customer needs.

We’ve helped customers in this situation before. If this sounds familiar or any details match one of your client’s situation...we may be able to help.

Contact our Business Development Managers, we’re here to help.
Jean Errington 07483 310314 jerrington@harpendenbs.co.uk
Graeme Aitken 07483 310334 gaitken@harpendenbs.co.uk
harpendenbs.co.uk/intermediaries

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