Buy to Let Case Studies

During the credit crunch many lenders withdrew from the buy to let arena making it difficult for property investors and landlords to borrow money. Lenders with available funds tightened policy and took advantage of their position to increase margins and fees.  Fortunately, over the last 12 months we have seen an easing of market conditions and witnessed the return of lenders into the buy to let space.  Detailed below are some recent case studies to help you get a feel for how the buy to let market is fairing today.

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• New Build properties in the name of a Limited Company (December 2009)

  04/01/2010

  Having completed a couple of new build houses, the developer decided to keep hold of the properties rather than sell them in a depressed market. The properties were held in the name of his Limited Company.

• HMO with works required before letting (Dec 2009)

  04/01/2010

  Applicant approached us looking to purchase a House of Multiple Occupation. Works were required to bring the property up to standard and to obtain the necessary licence from the local authority. The dilemma here was that funding was required to assist in the purchase albeit that the property was not in a position to generate the required income from day one.

• Refurbished Flats over a Café & Tattoo Parlour! (November 2009)

  04/01/2010

  An experienced landlord had recently purchased and renovated two leasehold flats above a parade of shops, along a busy main road into South London.

  He had already encountered difficulty in raising finance because one of the adjacent commercial premises below was a cafe and the other a tattoo parlour. Also, he had owned the flats for less than 6 months.
   

• Property in need of TLC! (November 2009)

  06/01/2010

  This landlord contacted us via the internet as he needed assistance in purchasing a purpose built flat, in a good location, in need of some refurbishment to make it habitable.  He had sufficient capital to fund the work but didn’t want to tie up all of his cash long term.

• Holiday Let Purchase (October 2009)

  06/01/2010

  Client approached MFB to fund a holiday let in the Lake District.

  The challenge here was that the provision of funds for holiday letting has been severely restricted by buy-to-let lenders in the last 18m. In addition we needed a lender that would consider the holiday letting income rather than assess the borrowing amount based upon a single ‘family let’ basis. To compound the issue the client was working abroad for a multi-national company.

• Auction purchase of multi-unit freehold block requiring finance urgently

  15/12/2010

  Enquiry from a client advising that she had purchased a property at auction two weeks before believing that her bank would provide the necessary finance. The bank then decided not to lend and we were approached to arrange finance as a matter of urgency. Read More...

• Buy to let with a gifted deposit (December 2010)

  17/12/2010

  A son and daughter-in-law were looking to purchase their parents’ property on a buy to let basis.

• Re-finance of a recently completed development of 28 flats (December 2010)

  20/12/2010

  An experienced property developer sought our assistance as his existing, high-street lender was pressing for repayment of the development loan.

• New leasehold title (December 2010)

  27/12/2010

  This client has owned a freehold property comprising three self-contained flats for many years and wished to raise finance against newly created leasehold titles. Read more...

• Multi-unit property refinance for an ex-pat (January 2011)

  10/01/2011

  Obtaining mortgage finance for freehold properties split into self-contained flats is not easy. The additional complication that the property title would be in three family names, one of which was resident in Australia. As this was a capital raising exercise to buy out another member of the family they did not want to omit one of the borrowers.