We were approached by the directors of an SPV limited company which owns numerous rental properties. They were looking to buy a 2-bed flat in London to add to their portfolio.
As two of the directors live overseas, the choice of lender was restricted as many providers will not accept ex-pats. Fortunately, we have direct access to a specialist buy to let lender that not only accepts SPVs but will also consider ex-pats who had to provide the following information in support of their application:
• Evidence of UK buy to let experience (tax returns & SA302s)
• Proof of UK citizenship
• Proof of residency abroad (not PO Box) within last three months
• Proof of residency in UK within last five years
• Proof of UK mailing address (not security address)
• A copy of overseas contract
• Proof of salary (last three months’ bank statements)
• Have a UK bank account for rent payments.
Both directors were able to provide this detailed documentation and so the following terms were offered:
Property Value: £175,000
Loan amount: £115,000
Loan to value: 66%
Rate: 5.14% loan term tracker
Term: 20 years interest only
Monthly mortgage payment: £492
Monthly rental income: £925
Annual gross yield: 6.34%
Arrangement Fee: 2.75%
Completion Date: May 2015
Consultant: Andy McOwat
Tel: 01732 471644
What is an SPV Limited Company?
A Special Purpose Vehicle is a non-trading limited company that exists solely for the purposes of buying, selling and letting of property. Only a handful of buy to let lenders accept SPVs and because underwriting is more complicated on these types of transactions, rates are generally higher than standard buy to let mortgages.
13th May 2015