Sale of leasehold flat to newly established SPV where freehold is owned by related party
We were approached by a married couple – both experienced investors with over 20 properties in their portfolio, looking to sell a one-bed leasehold flat to their newly established SPV Ltd Co.
The flat is part of a block of four in South East London, to which the clients also own the freehold.
The couple wanted to repay the existing mortgage on the flat, whilst raising £60,000 during the sale to finance further property investment.
This case was a challenge to place because lenders tend to steer clear of transactions where the freeholder and leaseholder are related.
We contacted a specialist lender which accepts this type of transaction and offers competitive terms with the RTI stressed at pay rate. The following terms were offered: