Full-time landlords remortgage ex-local authority flat

We were approached by a married couple who are full time landlords that have been managing a large portfolio of some 20+ properties for more than 20 years. They were looking to remortgage one of their properties in order to raise equity for further investment.

This property in question is a 3-bed ex-local authority flat in a 4-storey block in the South East which is now 50% privately owned.

The following challenges made finding a lending quite tricky:

     -  The flat is ex-Local Housing Authority owned

     -  Lenders that will consider ex-LHA flats prefer more than 50% private ownership

Fortunately one of the new specialist lenders accommodates this type of property and felt comfortable offering the following terms.

Property value: £385,000

Loan amount: £250,250

LTV: 65%

Rate: 2.69% 2 year fixed

Term: 20 years interest only

Rental income: £1,500 pcm

Mortgage payment: £561 pcm

Gross yield: 4.7% pa

Lender arrangement fee: 1.5% of loan amount (£3,754)

Consultant: Paul Martins

Consultant tel: 01732 471616


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