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Couple in their 60s refinance block of studio flats onto one BTL mortgage

Couple in their 60s refinance block of studio flats onto one BTL mortgage

09.10.18 | Written by: Jeni Browne

The clients: A couple looking to refinance a recently converted block of flats. The husband is a professional developer and the wife works as an administrator. Both applicants are in their 60s.

The property:
The husband had recently converted an industrial unit into seven studio flats based over four floors. Ranging in size, four of the flats are less than the 30 sqm – too small for the majority of buy to let lenders to consider.

The property itself is based in Oxford and let to professional tenants.

The finance:
The couple had requested a five year-fixed rate on an interest only basis. They were looking to for a loan to value of 75% which would allow them to clear their current borrowing and give them spare funds to invest in further projects.

The application process:
There were a few complexities with this case, which meant we would need to approach a specialist lender.

  1. Some of the studio apartments are less than 30sqm
  2. The block consists of over six units
  3. The couple were looking for a term that would take them into their 80s

We ended up taking the case to an intermediary only lender which specialises in commercial mortgages and complex buy to let. Prior to submitting the case we discussed the feasibility with their business development manager, who advised us to proceed with application.

Along with the standard application form we submitted three months’ worth of bank statements and the applicants’ proof of address and identification. Highly impressed with the block and applicants background in successful developments, the full loan amount was offered. Here are the details of the deal:

Property value: £1,410,000

Loan amount:
£1,056,000

LTV:
75%

Rate:
3.99% 5 Year Fixed

Term:
21 years interest only

Lender arrangement fee:
£18480 ( 1.75% added to loan amount)

Mortgage payment:
£3,863

Rental income:
£5,573 pcm

Consultant: Jeni Browne, 01732 471647

 

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