We were approached by an experienced landlord who was looking to expand her property portfolio. She had her eyes set on a 3-bed terraced house in Gravesend, which she planned to let to professionals on a single AST agreement.
On the advice of her accountant the client had decided to make the purchase via her SPV Ltd Co. When dealing with limited companies, lenders typically ask for personal guarantees from company directors and major shareholders. Whilst the client was the sole director and majority shareholder of the company, the client's spouse also held a substantial number of shares but did not wish to offer a personal guarantee.
We contacted an intermediary only lender which, after carrying out due diligence on both shareholders, was happy to assist without insisting on a personal guarantee from the client’s spouse. The following terms were offered:
Property value: £270,000
Loan amount: £202,500
Rate: 3.99% 5 year fixed
Term: 25 years interest only
RTI: 125% @ 3.99%
Borrower: SPV Ltd Co
Lender arrangement fee: 2% (£4,050)
Mortgage payment: £674 pcm
Rental income: £1,200 pcm
Gross yield: 5.3% pa
Consultant: Chris Longhurst, 01732 471607
This is just one example of how we have helped secure finance for a client, if you have a similar scenario or something you'd like us to look at please get in contact with us on 0345 345 6788 or contact me directly at firstname.lastname@example.org.
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.