A Substitution of Property (SOP) is required when a borrower wishes to release one of the properties from their TMW Portfolio account and replace it with another. A portfolio mortgage will have two or more properties acting as security for one mortgage account. A SOP allows a property to be sold or remortgaged and replaced with another without fully redeeming the portfolio mortgage account. We’ll not allow any increase in loan, loan to value (LTV) or portfolio size (number of properties held under the account) or any reduction in the overall rental cover of the portfolio.
A SOP is only required on TMW Portfolio accounts. These accounts were provided on a portfolio basis where any new borrowing was approved based on new and existing properties. The entire mortgage balance is secured against all of the securities held. Therefore individual loans aren’t linked to specific properties.
Requesting a SOP
You may either request a SOP directly, instruct a solicitor or broker to act on your behalf. If you do instruct a solicitor or broker to act on your behalf the relevant third party authority section of the application form will need to be completed. Completion of this section of the form will allow your solicitor or broker to have authority only in relation to the SOP request.
How long does it take to receive a quote to substitute a property?
The final quote will take approximately 30 working days, from receiving your request to sending the final quote. However this is dependent on the overall size of the portfolio and the valuations required, as detailed below. Failure to fully complete this application form may delay the release figure.