Equity release, developer penalties and a low valuation

The buyer refinanced their own mortgaged apartment (equity release) and used part of the funds for our unit, which had a post-handover balance and penalties with the developer.

We had the developer's penalties included in the statement of account so that everything was settled within the deal.

The bank's valuation came in low: LTV ended up at 50% instead of the expected 60%. The buyer covered the gap with an additional loan.

The deal closed successfully, with every party satisfied.