Double Remortgage to Capital Raise for London Portfolio Landlord
The Client: An experienced portfolio buy to let landlord who invested in both residential and semi-commercial properties via his SPV Limited Company.
The Properties: The client owned the freehold to a three-story semi-commercial property in London, consisting of two shops on the ground floor and two, 2-bedroom flats above. He had legally created two long leases for the flats to hold them on separate titles to the commercial elements below.
The Finance: The client wanted to remortgage both of the flats to raise capital so that he could further expand his portfolio. To keep repayments as low as possible, the client was after a sub-3% mortgage rate for the properties.
The Challenge: The main challenge, in this case, was that not all buy to let lenders will consider residential units above commercial property, especially when there is a related freeholder in the mix. As the flats were on separate titles, we were able to avoid semi-commercial products, which helped bring the available rates down. Using our knowledge of the market, we looked at lenders which include flats above commercial property in their criteria. From this, we were able to source a sub-3% mortgage rate, much to the delight of the client. Here are the details: