SPV Ltd Co purchases ex-council flat in Scotland

A father and son approached us looking to expand their property portfolio with the purchase of an ex-council flat in Glasgow.

The pair were looking to borrow via their SPV limited company, which had already been used to purchase six other investment properties.

Unfortunately, there are only a handful of lenders that will consider Scottish property, of which only a select few will lend to limited company applicants. Added to this the property was only valued at £72k, most lenders hold a minimum purchase price of £75k.

We took the case to an intermediary only lender; one we use regularly to place buy to let deals in Scotland. Happy with the location of the property and clients’ experience the following terms were offered:

Property Details

Property value: £72,000

Loan amount: £54,675

LTV: 75%

Rate: 4.14% term tracker

Term: 10 years interest only

Mortgage payment:  £188 pcm

Lender arrangement fee:1.5%

Rental income: £575 pcm

RTI: 125% @ 5.79%

Gross yield: 12% pa

Consultant: Andy McOwat, 01625 416396

20th June 2017