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
