The client, the director of an IT company and owner of one rental flat, approached us for help in financing the purchase of a large house in Manchester that had previously been split into nine separate flats, all tenanted by working professionals.
Because the client had no prior experience of owning and operating multi-unit properties held on a single freehold title, finding a lender proved challenging.
Also, there few lenders that will accept such large multi-units.
However, we approached a leading, specialist provider and after some negotiation managed to agree the following deal:
Property value: £490,000
Loan amount: £367,000
Product: 4.85% loan term tracker
Term: 25 years interest only
Rental income: £3,800 pcm
Gross yield: 9.3% pa
Mortgage payments: £1,483 pcm
Lender arrangement fee: 1.75% of loan
Consultant: Andy Elley
Consultant tel: 01732 471644