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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

NB: ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Mortgages for Business Ltd is registered
in England and Wales No. 2502713.

Registered office:
17 Kings Hill Avenue,
Kings Hill, West Malling,
ME19 4UA.

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Mortgages for Business Ltd is authorised and regulated by the Finance Conduct Authority (No. 313537) to transact regulated mortgages. We are a credit broker, not a lender. We work with the whole of market in sourcing a lender for you; we may receive a commission from the lender, and this amount varies between lenders. The FCA does not regulate some investment mortgage contracts. Mortgages for Business Ltd is a founding member of the National Association of Commercial Finance Brokers, the body that promotes best practice within the commercial finance industry. Telephone calls may be monitored or recorded for training purposes.

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