An experienced landlord with a property portfolio of circa 80 buy to let properties contacted us looking to purchase a property in Bristol. The majority of the client’s properties are located in and around Manchester.
The property the client was looking to purchase is a two-bed flat within a 19-storey block.
There were two main challenges with placing this case.
- The client had reached the maximum exposure limit set by many lenders
- The flat is in a 19-storey block so is classed as a high rise – most lenders won’t lend on high rise flats as they are harder to sell on
- The client wanted to complete before the PRA changes for portfolio landlords come into place in October 2017
We took the case to one of the specialist lenders, which we knew would consider the deal. Happy with the client’s application the following terms were offered.
The case is due to complete at the end of August.
Property value: £290,000
Loan amount: £217,500
Rate: 3.19% term tracker
Term: 25 years interest only
Lender arrangement fee: Nil
RTI: 125% @ 5.5%
Borrower: SPV Limited Company
Mortgage payment: £578 pcm
Rental income: £1,250 pcm
Gross yield: 5.1% pa
Consultant: Gavin Elley, 01625 416398
8th August 2017