Refinance of block of flats for new SPV Ltd Co

17th June 2015 Buy to let Mortgages,Buy to Let Mortgages Case Study

The clients are a married couple who are professional property developers and investors with more than 20 years’ experience.

They approached us for help in refinancing their latest development - a brand new block of five 2-bed flats they had built in a popular South Coast city. The build had been funded with the help of short term development finance which needed to be paid off. The property was owned in a SPV Ltd Company which our clients had set up specifically for the project.

Having decided to retain the block within their portfolio, the flats were to be let to professionals at £1,270 per month each. To help with budgeting, the clients were keen to remortgage the block onto a five year fixed rate.

We approached a bank that not only is happy to lend to investors with large portfolios and SPVs but also offers finance on multi-unit blocks owned a single freehold title.

After some negotiation we were able to secure sufficient finance to pay off the development loan and raise funds for the clients’ next building project.

Here are the details of the deal:

Property value: £1,200,000

Loan amount: £720,000

LTV: 60%

Rate: 3.59% five year fixed

Term: 15 years interest only

Rental income: £6,350 pcm

Gross yield: 6.4% pa

Mortgage payments: £2,154 pcm

Lender arrangement fee: £1,999

Consultant: Steve Bedford

Consultant tel: 01723 471609