We were approached by longstanding clients, a married couple looking to sell one of their individually owned properties to their SPV limited company where they are both directors and 50% shareholders.
The property is a 3-bed terraced house, located in Brighton, which is shared by four professionals.
The couple had remortgaged and raised capital on another property in order to fund the transaction. Unfortunately, the number of lenders willing to accept this deal was limited because the buyer and seller are related.
However, we approached a lender that can only be directly accessed by a few brokers (including Mortgages for Business of course!) that accepts related transactions and offers limited company products.
The clients chose the following product:
Property value: £200,000
Loan amount: £150,000
Rate: 4.39% 3 year fixed
Term: 20 years interest only
Lender arrangement fee: 1.5% (£2,250)
Mortgage payment: £557 pcm
Rental income: £1,000pcm
Gross yield: 6 % pa
Consultant: Charlie London, 01732 471604
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