We were approached by a married couple looking to purchase a 5-bed HMO on the outskirts of Liverpool with a deposit of only 15%.
Whilst they both work full-time in the medical industry they also own two rental properties, both held in their personal names.
On the advice of their accountant they had decided to set up an SPV Ltd Co for future buy to let purchase.
There were two main challenges with this case which would limit the number of finance options available to the couple.
- Very few buy to let lenders offer 85% LTV
- Although landlords, the couple had no experience with letting HMO properties – most lenders like to see at least three years.
Fortunately we have access to a semi-exclusive lender which was willing to accept the application.
Here are the details of the deal:
Property value: £160,000
Loan amount: £136,000
Rate: 4.74% 2 year discounted
Term: 30 years capital & interest
Lender arrangement fee: 2.5% (£3,400)
Borrower: SPV Ltd Co
Mortgage payment: £709 pcm
Rental income: £1,350 pcm
Gross yield: 10% pa
Consultant: Gavin Elley, 01625 416398
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.