2 flats remortgaged to raise finance for Ltd Co looking to expand portfolio

We were approached by a broker whose clients were two brothers, both joint directors of a SPV limited company owning over 20 rental properties. One of the brothers is a full-time landlord, with over 100 properties in his personal portfolio. The other, an auctioneer with six properties in his personal portfolio.

To expand their joint portfolio, the brothers were hoping to raise finance against two unencumbered, leasehold two bed flats. The flats are located east of the capital in a popular commuter town but in separate blocks.

Under the circumstances most buy to let lenders are not suited due to the size of the portfolio and as one brother lives with relatives, not owning his own home.

Thankfully Keystone Buy to Let Mortgages doesn’t impose a size limit on portfolios so was able to take on the case. The lending criteria does insist applicants own their own home, however as the applicant demonstrated his vast experience being a landlord the case was accepted. To protect against future rate hikes the directors chose five year fixed rates.

 

Property 1

Value: £135,000 

Rent: £675 pcm

Loan: £65,000

LTV: 48% LTV

Rate: 5.74% 5 year fixed

Term: 10 years interest only

Arrangement fee: 2.5%

 Property 2

Value: £125,000

Rent: £575 pcm

Loan: £65,000

LTV: 52% LTV

Rate: 5.74% 5 year fixed

Term: 10 years interest only

Arrangement fee: 2.5%

 

This is just one example of how we've helped a client secure a buy to let mortgage. To see more of our case studies please visit either Popy's or Gareth's profile page. And if you have any funding requirements, please do not hesitate to contact us. Our direct lines and email addresses can be found below.

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