Trading Ltd Co remortgages ex-council flat above shop to raise capital

The client is an hotelier and part-time property investor with a portfolio of 15 + rental properties owned both personally and in the limited company from which he has run his hotel business for 10 years.

He contacted us for help to refinance a 2-bed ex-council flat above a corner shop in South East London so that he could raise a deposit for another buy to let.

The property is owned by his trading limited company and had only a small mortgage remaining on it which mean he was looking to release £184,250.

We needed to approach a specialist lender who would accept:

  • Trading Ltd Co’s

  • Ex-council flats above commercial property

  • Landlords with large portfolios

After speaking with a handful of lenders, we found one that would best accommodate the client’s requirements and the application proceeded with a hitch. Here are the details of the deal:

Property value: £275,000

Loan amount: £184,250

LTV: 67% LTV

Rate: 4.29% 3 year fixed

Term: 20 years interest only

Borrower: Trading Limited Company

Lender arrangement fee: 2% (£3,685)

Mortgage payment: £658 pcm

Rental income: £1,250 pcm

Gross yield: 5.45% pa

Consultant: Gary McKenna, 01732 471652