Portfolio landlord purchases 7-bed student HMO in Scotland
The Client: A professional landlord with over ten properties in his portfolio – all held within his personal name.
As well as managing his property portfolio, the client is the sole director of a successful business in the retail sector.
The Property: Located in close proximity to the University of Dundee, the client was looking to purchase seven-bed HMO. He planned to let the property to students.
The Finance: The client was looking to secure a mortgage at 70% loan to value with his deposit coming from a mixture of personal savings and company dividends. To protect himself from any interest rate rise in the near future, he had requested a five year fixed rate.
Whilst this is fairly standard request, the fact that the property is an HMO and situated in Scotland meant that we would have to seek finance from a specialist lender.
The Application Process: Prior to approaching our chosen lender, we worked with the client to complete our buy to let application form and collate supporting documentation.
We took the case to a bank which regularly lends on these complex scenarios, with whom we have a strong relationship with. Deeming the client a good risk, an offer was made. The deal completed six weeks later.