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: Gareth Richards, 01732 471627
