Over the line: Rectifying a complex property transaction
Our client, a successful business owner, had purchased a property to knock down and redevelop as a new family home, intending to sell the current family home once the development was complete. She contacted us to arrange the finance, as we’d restructured her business several years earlier and were familiar with its current financing arrangements. We also knew the banks would want detailed cashflow forecasts to show the business could service the loan, given her self-employed status.
The problems began when we learnt the existing building on the property had been demolished before the loan application was complete, dramatically reducing the property value. The family was now stuck without finance to build their new home, potentially risking a forced sale of their current home, and having to rent elsewhere until the new property was complete. Understandably, tensions were running high.
WLM’s approach was to deploy our signature combination of accounting and financial planning expertise, appeasing the banks by producing clear, detailed cash projections backed up by believable assumptions. Thanks to our extensive networks in the finance industry, we were able to get the finance across the line. The client’s dream home was built, they were able to sell the original home on their terms and are more than happy with the outcome.