We were approached by a full-time landlord with 15+ rental properties looking to expand his portfolio.
He was looking for finance through his SPV limited company to buy a four-bed house in Surrey with a self-contained two-bed flat attached. His plan was to let the house and flat to students.
Classed as a combination of both HMO and multi-unit, the number of lenders we could approach for finance was somewhat restricted; however, we identified the most suitable provider which offered the following terms and the application was completed without a hiccough.
Here are the details:
Property value: £600,000
Loan amount: £450,000
Borrower: SPV limited company
Rate: 3.99% 2 year fixed
Term: 25 years interest only
Lender arrangement fee: 1.5% (£6,750)
Mortgage payment: £1,518 pcm
Rental income: £3,000 pcm
Gross yield: 6% pa
Consultant: Jeni Browne, 01732 471647