An existing client called us looking to capital raise against an unencumbered multi-unit, currently tenanted to professionals. The client is a full-time landlord with a small property portfolio which generates a personal income of £14k per annum.

The property in question is a converted townhouse comprising of two self-contained flats.

The client wanted to raise just under £94k to repay a large, personal loan.

There were three main challenges with placing the case, which meant a specialist lender would need to be approached.

1. The client’s income is solely from rent and less than the standard £25k pa threshold of many lenders
2. The property is classed as a multi-unit freehold block which most mainstream buy to let lenders avoid  
3. Both flats share the same electricity and water supply – again, not acceptable to many lenders because this arrangement can lead to tenant disputes

We took the deal to intermediary only lender Keystone – a lender which is able to deal with the more complex scenarios. Keystone's underwriters take a common-sense approach, so after carefully considering this unusual scenario agreed to the following terms