We were approached a would-be first time landlord who was looking to purchase his first buy to let property.
The client is self-employed, earning in excess of £25k pa although he plans to build a portfolio of rental properties over time.
He had set up a limited company through which to make the property purchase but on closer inspection, we discovered that the company was set up for general trading rather than a Special Purpose Vehicle for holding property.
As the majority of lenders that offer products to companies will only lend to SPVs, we helped the client set up an SPV.
The client need the finance to purchase a three-bed semi-detached house in a popular Welsh town with intention of letting it to families or professionals.
After offering the client a variety of options, he decided that as a first time buyer a two year fixed rate would suit him best.
The case was straightforward and was processed with ease.
Here are the details of the deal:
Property value: £145,000
Loan amount: £108,000
LTV: 75%
Rate: 3.75% 2 year fixed
Term: 20 years interest only
Mortgage payment: £337 pcm
Lender arrangement fee: 1.5% (£1,620)
Rental income: £595 pcm
Gross yield: 4.9% pa
Consultant: Jeni Browne, 01732 471647
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