Limited company director trying to get a mortgage please help!

vlevans

the other 50% is owned by my husband's father's close friend and he has owned it since the business was started in 1994.

vlevans

holly_hobby wrote: »

His position as a previous employee is important, not for proving what his previous salary was (as its irrelevant he is no longer in the position), but to prove to the lender that the business has been active for 20 yrs, he has worked there for 11 of those years, so is familiar with the workings of the co, and further more since his father has owned the co for the last 2-3 yrs.



Holly

I think I may have confused you, my husband's father had owned the business from when he started it in 1994. He actually started it with a close friend and the friend still owns the other 50%

Thrugelmir

vlevans wrote: »

I think I may have confused you, my husband's father had owned the business from when he started it in 1994. He actually started it with a close friend and the friend still owns the other 50%

Just a shareholder or active in the business?

holly_hobby

vlevans wrote: »

I think I may have confused you, my husband's father had owned the business from when he started it in 1994. He actually started it with a close friend and the friend still owns the other 50%

Then thats even better - I would presume that your Hubby has therefore been taught the business before he even got there ... the fact it has been trading for 20 yrs, 11 yrs of which he has been a part of, learning the ropes and bus as it grew, well its all to the good .. (as long of course that the co profits and turnover are constant and/or increasing and not going the other way !!) .

We are looking for someone who has the lender connections, and knows how to present a case (brokers on here will know what I mean by that - and no I don't mean in a dodgy manner !! :eek: ), to give your hubby the best possible fighting chance of getting your mge through underwriting.

By the way, has Dad retained an interest, even as a sleeping partner or as a non=employed (non shareholding) adviser to the Co ?

Either way, your next step from here is to go and have a chat with a whole of mkt mge broker (check if there is a fee for gen advice), and see what he comes up with ...as all our delilberations here won't get your mge sorted .... by the way doesn't the company accountant have any connections with local IFAs/Brokers who could be of assistance ?? ).

Hope this helps

Holly

vlevans

Thrugelmir wrote: »

Just a shareholder or active in the business?

Active in the business and always has been

Thrugelmir

holly_hobby wrote: »

Then thats even better - I would presume that your Hubby has therefore been taught the business before he even got there ... the fact it has been trading for 20 yrs (and as long as income in constant and/or increasing and not going the other way !!) then this is a larger positive than before

Not sure that this has any relevance in the cold light of financial day.

A good employee doesn't necessarily make a good entrepreneur.

Six months is not long under new ownership.

holly_hobby

Thrugelmir wrote: »

Not sure that this has any relevance in the cold light of financial day.

A good employee doesn't necessarily make a good entrepreneur.

Six months is not long under new ownership.

Please read my previous posts ... family business going for 20 yrs it is not a new venture, but a changing of the guard .. father to son

As I have said , nothing is concrete here - but we are trying to help the OP. She is aware its a long shot - but there is nothing to loose in giving professional advice and experience to try and help them acheive their goal.

If they fail to find a lender, they are none the worse off - but will know for certain there was nothing else that could have been done at the time.

Positive and informative posts always help .... any ideas from your mge placing experience?

Holly

vlevans

Thrugelmir wrote: »

Not sure that this has any relevance in the cold light of financial day.

A good employee doesn't necessarily make a good entrepreneur.

Six months is not long under new ownership.

As I have previously said my husband has worked for the company for 11 years, spending the past 2-3 years working in the office to take over from his father. He is not someone who has no idea what is going on with the business side of things and thought I'll give this a go and see how it works out.
We have an appointment with another mortgage advisor to see if there's anything he can do for us but has told me that he has had experience in this type of thing before. So we are hopefull this ccan resolved.

holly_hobby

vlevans wrote: »

As I have previously said my husband has worked for the company for 11 years, spending the past 2-3 years working in the office to take over from his father. He is not someone who has no idea what is going on with the business side of things and thought I'll give this a go and see how it works out.
We have an appointment with another mortgage advisor to see if there's anything he can do for us but has told me that he has had experience in this type of thing before. So we are hopefull this ccan resolved.

Now that's the kind of post and broker I like ... :T

(you didn't mention he has shadowed for the last 2/3 yrs ready to take over the reigns ... your pitch just got better !!)

Please let us all know how you get on ... I shall keep it all crossed for you .....

Holly

Thrugelmir

holly_hobby wrote: »

Please read my previous posts ... family business going for 20 yrs it is not a new venture, but a changing of the guard .. father to son

I'm not in anyway casting aspirsations on the individual concerned.

Changing the guard in no way infers that the business will as successful in the future as it was historically.