The clients: A couple in Lancashire who have a portfolio of six buy to let properties, all held within their SPV limited company. The couple are both self-employed and all their income is generated from rental income.
The property: The couple wanted to refinance a terraced house, which had been converted in the 1990s, into two self-contained flats, each currently let out for £350 pcm.
The finance: Looking to remortgage to 75% loan to value which would allow them to raise capital to expand their portfolios, we knew we would have to take the case to a specialist lender because of the combination of factors:
- Portfolio landlords
- Relatively low property price and loan required
- Income solely from rent
The application: We submitted the case and a valuation was instructed. Happy with the property and the applicants, the lender issued a formal mortgage offer quickly and the case completed without fuss, leaving our clients free to find their next investment.
Property value: £80,000
Loan amount: £60,000 (75% LTV)
Rate: 3.95% 5 year fixed
Term: 20 years interest only
Mortgage payment: £201 pcm
Rent: £700 pcm
Lender arrangement fee: 1% of the loan amount
Gross yield: 10.5% pa
Consultant: Andy McOwat, 01625 416 396
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28th January 2019