68 year old landlord remortgages through SPV Ltd Co

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

20th July 2015