Landlord earning less than £25k pa raises capital against multi-unit
An existing client called us looking to capital raise against an unencumbered multi-unit, currently tenanted to professionals. The client is a full-time landlord with a small property portfolio which generates a personal income of £14k per annum.
The property in question is a converted townhouse comprising of two self-contained flats.
The client wanted to raise just under £94k to repay his parents who had gifted him the property a year ago.
There were three main challenges with placing the case, which meant a specialist lender would need to be approached.
- The client’s income is solely from rent and under the standard £25k threshold of many lenders
- The property is a multi-unit
- Both flats share the same electric/water mains – something lenders tend to steer clear of
We took the deal to intermediary only lender Keystone – a lender which is able to deal with the more complex scenarios. Happy with the client’s experience the following terms were offered.