BTL mortgage for multi-millionaire with commercial and residential property portfolio

Key points:

  • A wealthy landlord with a very large portfolio of both commercial and residential investment properties

  • Properties owned in a mixture of vehicles – trading Ltd Co, SPV Ltd Co and in his personal name

  • Lots of buy to let and commercial mortgages with lots of different lenders

  • Hoping to secure finance for a 3-bed semi-detached house via his SPV

Full details:

We were approached by a broker looking to source buy to let finance for his client – a wealthy landlord with an extensive property portfolio and car sales business.

The client owns a mixture of residential and commercial investment property in his car trading limited company, in an SPV limited company and in his personal name, totaling in excess of £8m.

He was looking to add to his property portfolio with the purchase of a 3-bed semi-detached house in a well sought after area of Essex. He was hoping to secure finance using his SPV limited company, of which he is director and 90% shareholder – his partner holds the remaining 10% of shares.

The client’s originating broker had approached numerous mainstream lenders but had been declined because the SPV owns properties mortgaged by other lenders and most mainstream lenders require a debenture over the company which was not possible.

Fortunately with direct access to Keystone we were able to place the case and secure the following terms:

Property value: £325,000

Loan amount: £230,000

LTV: 71%

Rate: 4.29% 3 year fixed

Term: 10 years interest only

Borrower: SPV Limited Company

Lender arrangement fee: 2% (£4,600)

Mortgage payment: £838 pcm

Rental income: £1,800 pcm

Gross yield: 6.6% pa

Consultant: Phil Riches, 01732 471630