In the autumn of 2016 an existing landlord client contacted us looking to refinance a high-value multi-unit consisting of four flats.
The property – a four-storey Victorian town house in North London, had been purchased for cash at auction at the sum of £1.85m.
Following the purchase, the client spent three months refurbishing the property to a higher standard at the cost of £50,000. He now estimated the property to be worth in the region of £2.1m.
With the works complete, the client was keen to refinance the property onto a buy to let mortgage to raise capital for further purchases - a cycle he follows on a regular basis.
There were a few complications with this deal which limited the number of lenders willing to accept the case.
- The client was looking for a large loan amount of over £1m
- The client was looking to borrow via an SPV Ltd Co
- The property had been purchased under six months ago – most lenders like a property to have been in the applicant’s ownership for at least six months
- The client already has a large portfolio of mortgaged properties in the background
We took the case to an intermediary only lender which we knew would consider the case. We helped the client fill out the application form and collate the supporting documentation.
Happy with the client’s experience coupled with the prime rental location of the property an offer was made. The deal completed in just over a month.
Property value: £2,015,000
Loan amount: £1,220,000
Rate: Tracker at 3.24%
Term: 20 years interest only
RTI: 125% @ 5.5%
Borrower: SPV Ltd Co
Lender arrangement fee: 1.25% (£15,250)
Mortgage payment: £3,294 pcm
Rental income: £7,020 (estimated)
Gross yield: 4.18%
Consultant: Steve Olejnik, 01732 471612
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 email@example.com.
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.