Non-homeowning couple refinance BTL in SPV Ltd Co

The clients are a married couple who own two buy to let properties in an SPV limited company, although they don’t own their own home. 

One of the properties is owned outright, the other, a terrace house in a large Lancashire town, has a small mortgage on it.

The husband, 71, is retired and receives an income in excess of £25k pa. The wife works full-time. 

They approached us for help in refinancing the mortgaged property so that they could release equity to expand their portfolio.

Our challenge in finding a lender was three-fold – as many lenders 

1. Insist that borrowers own their own home

2. Will not provide finance to SPVs

3. Only provide finance to borrowers up to 75 years of age – the couple wanted a longer term.

Finding a lender that would accept all three nuances of the case did reduce the options; however, we found a specialist that was prepared to help on the condition that the specialist become the sole lender to the SPV.

Here are the details:

Property value: £225,000

Loan amount: £135,000

LTV: 60%

Product: 3.75% 2 years fixed

Term: 9 years interest only

Rental income: £795 pcm

Gross yield: 4.2% pa

Mortgage payments: £422 pcm

Lender arrangement fee: 2% (£2,700)

Consultant: Gavin Elley

Consultant tel: 01625 416390

Consultant