First-time landlord raises finance to buy out brother

The client is a would-be first time landlord who works as a sole trader in the entertainment industry.

He and his brother had jointly inherited the property.

He was looking to raise finance on the property so that he could buy out his brother.

The property in question is a semi-detached house in a highly desirable commuter town in West Sussex.

Here are the details of the deal:

Property value: £250,000

Loan amount: £70,000

LTV: 28%

Range: Keystone Solutions Range for Individuals

Product: 8.49% fixed for 3 years

Term: 3 years interest only

Rental income: £1,200 pcm

Gross yield: 5.8% pa

Mortgage payments: £495 pcm

Facility fee: 3% (£2,100) added to loan

Broker proc fee: 1% (£700)

Consultant: Gareth Richards

Consultant tel: 01732 471627

Consultant