We were approached by the directors of an SPV limited company to help them refinance one of their investment properties – a block of four two-bed flats in Bristol.
The clients are both currently employed as engineers.
The SPV currently holds three properties all located in Bristol and the directors are looking to purchase further investment property with the capital raised.
The number of lenders willing to look at the case was restricted because the property is a multi-unit block of flats owned on single freehold which not all lenders accept.
Luckily we have access to an intermediary only lender which accepts multi-unit properties and SPV limited companies.
Keen not be locked in for a fixed period the clients requested a tracker rate. The lender offered the following terms:
Property value: £800,000
Loan amount: £500,000
Rate: 4.75% (Lender’s LIBOR + 3.99%)
Term: 25 years interest only
Mortgage payment: £1,942 pcm
Lender arrangement fee: 1.5% (£7,500)
Rental income: £2,850 pcm
Gross yield: 4% pa
Consultant: Jeni Browne, 01732 471647