We were approached by a broker whose client – an experienced, full-time landlord was looking to purchase his first property at auction.
He had his sights set on an ex local authority 1960’s flat within a 17 storey block in North London.
Purchases at auction have to be completed within 28 days, so finding a lender who could release the funds within a tight timescale was key.
The timing was not the only issue the broker had found with this deal – the concrete construction, ex-local authority status and size of the block had also put off many potential lenders.
Fortunately Keystone deemed the property type a good risk and was able to make an offer within one week, releasing the funds in time for the auction purchase.
Now complete, the client is planning to remortgage the property onto a buy to let mortgage.
Here are the details of the deal:
Property value: £310,000
Loan amount: £205,000
Rate: 0.99% pcm – Keystone’s Auction Finance Range
Term: 12 months
Borrower: Individual application
Lender arrangement fee: 2% (£4,100)
Lender exit fee: Nil
Rental income: £1,485 pcm
Gross yield: 5.7% pa
Consultant: Phil Riches, 01732 471630