Trading Ltd Co purchases 4-bed HMO for letting to employees
The Clients: A husband and wife, both directors of a trading limited company which owns a hotel in Somerset.
The Property: The couple were looking to purchase a four-bed HMO in close proximity to the hotel for letting out to employees. The property would be let out on four separate ASTs.
The Finance: The couple had inherited a sum in excess of £100k from a recently deceased family member - £75k of this was to be used as a deposit on the HMO.
The Application Process: Due to the complexity of the case we needed to approach a specialist lender. We took the case to Keystone Property Finance for the following reasons:
- Trading limited companies accepted. Only a handful of lenders offer buy to let mortgages to trading limited companies. Keystone also offers the same pricing to individuals, SPVs and trading limited companies.
- HMOs up to eight-beds. Keystone has a product range specifically designed for HMO and multi-unit property.
- Company lets accepted. Keystone is one of the few lenders which will accept an applicant’s employees as tenants.
- First-time HMO landlords accepted. Although the couple have experience in running a hotel, they have no experience in letting out an HMO property.
To support the application, we asked the couple to provide us with evidence of income, proof of deposit and their last three months’ bank statements. We sat down with one of the underwriters at Keystone and discussed the case.
Deeming the couple a good risk, the following terms were offered within one month of submitting the application.