The client is an experienced landlord with over 20 rental properties located in and around Manchester.
He contacted us looking for auction finance to purchase a two-bed terraced house in need of a new kitchen and bathroom and a general tidy up before it could be let.
The landlord estimated the works would take around 6-9 months to complete but was keen to find a loan with no exit fee in case he could finish the job sooner.
We suggested an auction finance provider which finds this type of case straightforward, has a product with no exit fees and is currently offering a very competitive rate.
The landlord agreed and the funds were arranged within the 28 day timescale on the following terms:
Property value: £53,500
Loan amount: £37,450
Rate: 0.75% pcm
Term: 9 months
Borrower: Individual name
Lender arrangement fee: 2% (£749)
Monthly payment: £280 pcm
Expected rental income: £450 pcm
Gross yield: 10% pa (based on pre-works value)
Consultant name: Andy McOwat, 01625 416369
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.