Woodworm, roof damage, rising damp, electrical issues and finance…

We were approached by a part-time landlord who was looking to purchase a three-bed Victorian terraced house in South East London via his SPV limited company.

The property was in need of major refurbishment before it could be let out to tenants, so could not be purchased using a standard buy to let mortgage. Problems included:

• Wet rot
  
  
• Roof damage
  
  
• Woodworm
  
  
• Rising damp
  
  
• Electrical wiring issues

The client, who had not carried out any major refurbishments before, decided to purchase the property using a short-term loan with the aim of refinancing it onto a buy to let mortgage once the works are complete.

We approached an intermediary only lender with whom we have exclusive access and the client was offered the following terms:

Property value: £135,000

Loan amount: £101,250

LTV: 75%

Rate: 0.85% pcm

Term: 12 months

Lender arrangement fee: £2,055

Lender exit fee: Nil

Monthly payment: £861 pcm

Consultant: Gavin Richardson, 01732 471613

10th May 2016