The Clients: A married couple who live and work in Gibraltar for up to six months year. They also own two rental properties in Kent, one unencumbered and one with a buy to let mortgage. The couple approached us for help in raising finance against the property they own outright so that they could make repairs to the other rental property and expand their portfolio.
The Property: A typical 1930’s 3-bed semi-detached house in North Kent close to all amenities, let to a family for £1,450 pcm.
The Finance: The couple were looking to raise £100,000 – just 24% of the value of the house. Despite the relatively small loan amount, we knew this could prove tricky to place as we’d have to find a lender that would accept the couple’s peripatetic, expat lifestyle! On the advice of their accountant, the couple want to raise the capital personally.
The Solution: We approached a buy to let lender which accepts expats borrowing personally and does not insist that applicants work for multi-national organisations. Double-checking the lender’s criteria confirmed to us that our clients stood a good chance of being offered the finance they needed so we worked with them to collate the documents that would be required in support of their mortgage application:
- Proof of identity, addresses and income (in both the UK and Gibraltar)
- Bank and credit card statements
This done, we submitted the application and a formal mortgage offer was issued a few weeks later. We are now working with all parties to ensure that the mortgage completes within the next few weeks. Here are the details:
Property value: £425,000
Loan amount: £100,000
Rate: 3.94% fixed for 2 years
Term: 12 years interest only
RTI calculation: 145% at 5.5%
Mortgage payment: £329pcm
Lender arrangement fee: 1.5% of loan amount (£1,500)
Rental income: £1,450pcm
Gross yield: 4.1% pa
Consultant: Chris Longhurst, 01732 471607
13th March 2018