The clients: Portfolio landlords experienced in converting standard properties into high quality, licensed HMOs. The pair also own a chain of fish and chip shops in the West Midlands.
The property: A four-storey Victorian house in Birmingham converted into a luxury HMO for letting to professionals. The semi-detached property consists of eight bedrooms, three bathrooms and three living rooms.
The finance: The pair were hoping to refinance the HMO at 75% loan to value. They planned to use the capital raised to invest in further buy to let property.
The application process: In total the clients own eight rental properties. Before approaching a lender, we worked with the client to put a property portfolio spreadsheet together. We offer a free template to landlords looking for guidance.
We took the case to an intermediary only lender which is willing to lend on large HMO property. Happy with the clients’ experience an offer was made within one week of submission!
Here are the details of the deal:
Property value: £375,000
Loan amount: £281,250
Rate: 3.39% 2 Year Fixed
Term: 25 Years Interest only
Lender arrangement fee: Nil
Mortgage payment: £806 pcm
Rental income: £2,380 pcm
Consultant: Gavin Elley, 01625 416398
16th October 2018