Sue Coyle, Borro’s Senior Underwriter expounds on how she has solved some of the unique cases from her career and how her approach has changed now that she is at Borro.
Even in bridging, which is well pretty understood, do you receive a lot of complicated cases?
Always! It’s a really interesting role. No two days are alike and customers always have quirky ideas, range of properties and schemes for us to assess.
Can you give an example of one?
Last summer, while at an international bank, a customer approached me for a property bridge loan, however his existing Barn property and the new one he wanted to buy as an investment, had ATs on them.
What’s an AT?
It means an Agricultural Tie – they can be entered onto the Land Registry as a Restrictive Covenant. In this instance it could only be sold onto farmers or their family, or people demonstratively active within the farming community. This is to ensure that people in the industry are able to have the opportunity to buy homes where they work /countryside to ensure that the skills/ farming sector continues to be a viable option for those in the sector and encourage continuation.
That must have had a significant impact on the deal?
This obviously affected the valuation, as the market would be reduced to buyers who would qualify under the restriction, thereby limiting the market, and therein valuation. Plus, for the same reasons on resale value and potential subsequent sale.
How did you get around the problem?
I structured a deal using additional non-residential property to release enough funds to make his purchase and during the term of the bridge loan, worked with him, his solicitor and his estate agent to help get the AT removed prior to the end sale. Everyone was happy!
Would you approach this any differently now that you’re at Borro?
Yes, I would have been able to look at the various other assets the customer had – such as his cars, wine, or watches – to make up any shortfall in valuation, which I am sure the customer would have preferred. The range of asset lending available from Borro would have given the customer far more options, and also provide more flexibility for me as the Underwriter. This approach and the ability to offer innovative lending solutions was actually one of the main reasons for my decision to join Borro.