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No arrangement fee for portfolio landlord refinancing block of 5 flats above barbershop

No arrangement fee for portfolio landlord refinancing block of 5 flats above barbershop

23.10.18 | Written by: Calum Obbard-Banham

The client: An experienced full-time landlord with 40 properties in his portfolio. Most of the client’s properties are held within his SPV limited company.
Looking to expand his portfolio, the client approached us for help. He was hoping to raise finance against one of his existing properties.

The property: The client was looking to remortgage a block of five flats above a barbershop in East London. The property is situated in a prime location for commuters, just a five-minute walk from the nearest tube station.

The finance: To raise the amount required, the landlord was looking to borrow at 75% loan to value. He was also keen to secure a five-year fixed rate to protect himself from any rate rises in the near future.

There were a few complications with this case which would restrict the number of finance options available:

  • The flats are situated above commercial premises
  • The landlord was looking to borrow in excess of £1m
  • Not all lenders will accept blocks of flats
  • The landlord has a large portfolio of properties

The application process: We took the case to one of the specialist lenders which we have placed similar cases with in the past. This lender doesn’t impose any restriction on the number of properties held in a portfolio. It will also lend against unusual property types and take a view on large loan amounts.

We worked with the client to ensure his property portfolio contained the necessary details, we then collated the supporting documentation including proof of ID and address and submitted it to the lender. Within one month an offer was received. To the client’s delight, this lender did not charge an arrangement fee.

Here are the details of the deal:

Property value: £1,350,000

Loan amount:
£1,008,750

LTV:
75%

Rate:
3.98% 5 Year Fixed

Term:
18 years interest only

Lender arrangement fee:
none

Mortgage payment:
£3,345 pcm

Rental income:
£5,700 pcm

Gross yield:
5%

Consultant: Calum Obbard-Banham, 01732 471648


Looking to refinance your property? Contact our BTL team to discuss your requirements on 0345 345 6788.

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ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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