We were approached by an experienced landlord who wanted to release equity from one of his six buy to let properties, in order expand his portfolio.
The property in question – a two-bed flat in a popular North Eastern town – is owned within the landlord’s SPV limited company, of which he is the sole director.
The landlord is 68 years old and was hoping to get a mortgage term past his 75th birthday which meant that the choice of lenders was somewhat limited.
We negotiated with a lender which not only provides buy to let finance to SPV limited companies but also allows borrowing up to 85 years.
In this instance, the landlord chose a mortgage term of 10 years. Here are the details:
Property value: £200,000
Loan amount: £130,000
LTV: 65%
Product: 3.81% term tracker
Term: 10 years interest only
Rental income: £550 pcm
Gross yield: 3.3% pa
Mortgage payments: £413 pcm
Lender arrangement fee: 1% of loan amount (£1,300)
Consultant: Chris Longhurst
Consultant tel: 01732 471607