SPV Ltd Co raises capital on 3 unencumbered flats

We were approached by a couple, both GPs, who were looking to raise finance against three unencumbered 1-bed flats in Bromley owned by their SPV limited company.

The funds raised would be used as a deposits to purchase more buy to let property.

The couple were slightly concerned that borrowing in the name of a limited company would be very expensive; however, we were able to source a five year fixed rate deal at a very competitive rate by limiting the gearing on each flat to 65% LTV.

Also, the application fee of £400 (including valuation) for each property was much cheaper than that quoted by other lenders which came as a welcome bonus.

All three applications completed without a hitch. Here are the details - the same for each of the three properties:

Property value: £300,000

Loan amount: £195,000

LTV: 65%

Rate: 3.59% 5 year fixed

Term: 25 years interest only

Lender arrangement fee: £1,999

Mortgage payment: £589 pcm

Rental income: £1,167 pcm

Gross yield: 4.67% pa

 

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Consultant