Buy to let mortgage for trading-turned-SPV limited company
The Client: An experienced, full-time landlord who was previously a lawyer, looking to buy another rental property using his limited company as the borrowing vehicle, although the deposit was being provided by funds raised from the sale another buy to let property he had owned personally.
The Property: A 3-bed detached house valued at £315,000 in a popular residential area of Bedford.
The Finance: This case was a challenge for a couple of reasons:
- Many lenders were not going to accept his limited company, which, nine months previously, had traded and was now classed as a Special Purpose Vehicle.
- The deposit was from the client personally and not from within the company.
The solution: We approached a specialist buy to let lender which we knew would take a pragmatic approach. It doesn’t accept trading limited companies but with the help of the client’s accountant we could show that the company is now an SPV. This lender was also prepared to accept that the deposit was provided by the landlord personally. Having provided an acceptable paper trail with the mortgage application, the lender issued the following terms: