Simultaneous remortgage and purchase by newly full-time landlord

We were approached by a landlord in her 60s looking to raise funds to expand her property portfolio which currently consists of six rental properties in Kent, owned both personally and via an SPV limited company.

Until recently she had worked full-time as a secretary in the City and only managed her buy to let portfolio in her free time.

Wanting to spend more time on maintaining and expanding her portfolio, she had recently resigned from her job.

She had her eyes set on a two-bed flat in Bromley but needed to remortgage one of her unencumbered properties to raise the deposit.

There were three main challenges with this deal:

• The client, already in her 60s was looking for a 25 year term

• Even though the client had been on a good salary, she was no longer employed

• We needed a lender that would be happy to organise the remortgage and purchase at the same time.

We approached an intermediary only lender which was happy with the client’s bank statement and credit profile, so offered the following terms:

Remortgage

Property value: £186,000

Loan amount: £110,000

LTV: 59%

Rate: 3.69% 2 year fixed

Term: 25 years

Lender arrangement fee: £2,499

Borrower: SPV Ltd Co

Mortgage payment: £338pcm

Rental income: £800pcm

Gross yield: 5.16%pa

 

Purchase

Property value: £195,000

Loan amount: £115,000

LTV: 59%

Rate: 3.69% 2 year fixed

Term: 25 years

Lender arrangement fee: £2,499

Borrower: SPV Ltd Co

Mortgage payment: £353pcm

Rental income: £800pcm

Gross yield: 4.92%pa

Consultant: Nick Helm, 01732 471608

Consultant