Remo for ex-pat on flat to raise capital for portfolio expansion

A broker approached us on behalf of his ex-pat client who was looking to remortgage a rental property in London.

The client is a British ex-pat that has being living in Africa for more than three 3 years, working for a multinational, luxury travel company.

He wanted to remortgage his London rental property to repay his current lender and expand his portfolio with the purchase of a second buy to let property.

The flat he was looking to remortgage is on the fourth floor of a five-storey and the client’s broker was struggling to place the case because:

• The client is an ex-pat

• Flats in larger blocks are not accepted by all buy to let lenders

• The clients only credit footprint in the UK was his mortgage history with his current lender

Fortunately the client was able to provide pay slips and a work contract to prove his income.

We were then able to approach a peer to peer lender who was happy to lend on the case, as they did not deem it high risk.

Here are the details of the deal:

Property value: £320,000

Loan amount: £210,000

Rental income: £1,343 pcm

LTV: 72%

Rate: 5.10% fixed for 3 years

Term: 5 years interest only

Mortgage payments: £892 pcm

Gross yield: 5.04% pa

Lender arrangement fee: 2%

Completion date: April 2015

ConsultantGareth Richards

Consultant tel: 01732 471627