Landlord releases equity to fund residential purchase

The client is a London-based teacher who also owns two buy to let properties – both unencumbered.

She had been trying to get a residential mortgage to buy a house to live in but didn’t have a big enough deposit for the property in question.

To increase her deposit, she approached us for help to release some of the equity in one of her rental properties – a house let to a family which generates £1,450 per month in rent.

We contacted a leading, mainstream buy to let lender which is currently offering some excellent rates.

Here are the details:

Property Value: £450,000

Rental income: £1,450 pcm

Loan amount: £270,000

LTV: 60%

Product: 2.99% 2 year fixed rate

Term: 25 years interest only

Lender arrangement fee: £995 added to loan

Mortgage payments: £673 pcm

Gross yield: 3.9% pa

Consultant: Paul Martins

Consultant tel: 01732 471616

 

Consultant