£1.89m of buy to let mortgages for new build development
The client: An experienced property developer and landlord who had an extensive investment portfolio which he operated through an SPV limited company.
The development: A small residential development in East London close to good transport links and good amenities. Within the development, there were eight units consisting of six 2-3 bed houses and two 2-bed flats.
The finance: The build had been funded development finance. With the properties ready to be inhabited, our client wanted to repay the loan by refinancing on a buy to let basis so that the homes could be let out. In particular, he was keen to secure a five-year, interest only, fixed rate either on each property or as a portfolio loan.
The challenge: It may have been easier for our client to sell on the properties because not many lenders will finance new-builds or multiple units within the same postcode.
The solution: We spoke with several buy to let lenders to determine the best possible deal given the complexities of the case. Two lenders stood out, both offering to finance some, but not all, of the properties within the development.
The first lender was happy in principle to fund four of the units on separate buy to let mortgages. Our client was happy with the five-year fixed rate offered and the lender arrangement fees which would be added to the loans. We helped our client to pull together all the necessary supporting documents and promptly submitted the applications. Just 10 days later, to our client’s delight, the lender issued four formal mortgage offers.
We are expecting the mortgages to complete within the next 3-4 weeks and will be working hard to keep the deals on track. We are also working with the other lender to secure finance on the remaining properties. We will, of course, let you know how we get on.
Below you will find the details of the deal and if you have a development project you would like to refinance, do get in touch to discuss the options.