The client is an hotelier and part-time property investor with a portfolio of 15 + rental properties owned both personally and in the limited company from which he has run his hotel business for 10 years.
He contacted us for help to refinance a 2-bed ex-council flat above a corner shop in South East London so that he could raise a deposit for another buy to let.
The property is owned by his trading limited company and had only a small mortgage remaining on it which mean he was looking to release £184,250.
We needed to approach a specialist lender who would accept:
- Trading Ltd Co’s
- Ex-council flats above commercial property
- Landlords with large portfolios
After speaking with a handful of lenders, we found one that would best accommodate the client’s requirements and the application proceeded with a hitch. Here are the details of the deal:
Property value: £275,000
Loan amount: £184,250
LTV: 67% LTV
Rate: 4.29% 3 year fixed
Term: 20 years interest only
Borrower: Trading Limited Company
Lender arrangement fee: 2% (£3,685)
Mortgage payment: £658 pcm
Rental income: £1,250 pcm
Gross yield: 5.45% pa
Consultant: Gavin Richardson, 01732 471613