The client is an experienced landlord with a large property portfolio spanning across South East London.
He approached us looking to raise finance on one of his rental properties to fund upgrade works on other buy to lets within his portfolio.
The property he was looking to refinance is a two-bed ex local authority flat located in a 50% privately owned block in Lewisham.
Finding a suitable lender was set to be a challenge as a large proportion of buy to let lenders will not consider ex-local authority flats in blocks where under 70% is privately owned.
Fortunately we have direct access to an intermediary only lender that was happy to assist with the deal as long as the valuation returned positive.
The client was offered the following terms:
Property value: £420,000
Loan amount: £280,000
Rate: 4.29% 5 year fixed
Term: 25 years interest only
Lender arrangement fee: 1% (£2,800)
Mortgage payment: £1,011 pcm
Rental income: £1,750 pcm
Gross yield: 5% pa
Consultant: Jeni Browne, 01732 471647
10th May 2016