Inexperienced landlord purchases his first multi-unit property

The client, the director of an IT company and owner of one rental flat, approached us for help in financing the purchase of a large house in Manchester that had previously been split into nine separate flats, all tenanted by working professionals.

Because the client had no prior experience of owning and operating multi-unit properties held on a single freehold title, finding a lender proved challenging.

Also, there few lenders that will accept such large multi-units.

However, we approached a leading, specialist provider and after some negotiation managed to agree the following deal:

Property value: £490,000

Loan amount: £367,000

LTV: 75%

Product: 4.85% loan term tracker

Term: 25 years interest only

Rental income: £3,800 pcm

Gross yield: 9.3% pa

Mortgage payments: £1,483 pcm

Lender arrangement fee: 1.75% of loan

Consultant: Andy Elley

Consultant tel: 01732 471644