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.