Landlord purchases multi-unit via newly established SPV

We were approached by a broker wanting access to buy to let mortgages from Axis Bank.

His client is a full-time landlord looking to use a newly established SPV limited company to purchase a multi-unit property made up of two self-contained flats located in London.

For tax efficiency the landlord owns some of his other rental properties in separate SPVs and some personally.

Both of the flats within the multi-unit are let to professionals. The ground floor flat has two bedroom and the top floor flat has three.

The client chose a five year fixed rate. The RTI is 125% @ at 4.59% (pay rate) allowing the client to borrow more than could be achieved using a standard notional rate calculation. 

The broker managed his client and we ensured that the application was processed as swiftly and efficiently as possible.

Property value: £560,000

Loan amount: £420,000

LTV: 75%

Rate: 4.59% 5 year fixed for SPV Ltd Co’s

Term: 25 years interest only

Borrower: SPV Limited Company

Mortgage payment: £1,607 pcm

Lender arrangement fee: 2% (£8,400)

Rental income: £2,916 pcm

Gross yield: 6.2% pa

Consultant: Charlie Potter, 01732 471648