SPV with elderly shareholder raises capital on high rise flat
A mother and son approached us looking to release equity from one of their buy to let properties – a two-bed flat within an 18-storey block. They planned to use the capital raised to purchase their third buy to let property.
The mother and son’s properties are held within an SPV Ltd Co. The son is the sole director and 80% shareholder, the mother owns the remaining 20% shareholding.
As the mother is elderly with no income, we needed to source finance from a lender which would underwrite the case based solely on the director’s income. (Some lenders will ask to look at the income of all shareholders).
We took the case to an intermediary only lender which will underwrite on this basis and, happy with the son’s income and experience, the following terms were offered: