The clients are a husband and wife team with one holiday let up and running were looking to add a second. Based in a popular North East resort, they had the opportunity to acquire a freehold property comprising 2 x 1-bed recently refurbished apartments.
The challenges they found included the relatively low purchase price coupled with the multi-unit nature of the building and the ability to let on a short term basis.
To resolve their issues, we found a lender that will lend on multi-unit properties owned a single freehold title valued over £75k that will also allow holiday lettings as long as the property could be let on a standard Assured Shorthold Tenancy agreement.
The added bonus for the clients was the availability of a reasonably priced five-year fixed rate to help with their budgeting.
Here are the details of the deal:
Property value: £97,000
Loan amount: £72,750
Loan to value: 75%
Term: 25 years interest only
Rate: 5.44% 5 year fixed
Lender arrangement fee: £1,818 (2.5%)
Consultant: Chris Longhurst
Consultant tel: 01732 471607
This is just one example of how I've helped a client secure a buy to let mortgage. To see more of my case studies please visit my profile page. And if you have any funding requirements, please do not hesitate to contact me. My direct line and email address can be found below.
13th May 2014