We were contacted by a husband and wife who were looking to refinance one of their rental properties through their SPV limited company. Both of the clients are experienced investors owning 3 buy to let properties in their personal names and 3 investment properties through their limited company.
They were looking to expand their portfolio, so wanted to refinance one of their rental properties to raise capital. The property they were looking to raise finance against is a 2 bed flat above a café in North London.
Most mainstream buy to let lenders won’t accept SPV limited companies or flats above commercial premises, which made placing the deal more of a challenge. Because of this we decided to approach a peer to peer lender who takes a more common sense approach to lending and assesses the application as a whole.
After taking the clients experience and background income into consideration they decided they were more than happy to lend on the property and offered a competitive rate. Here are the details of the deal:
Property value: £400,000
Loan amount: £280,000
Loan to value: 70%
Rate: 4.75% loan term tracker
Term: 5 years interest only
Monthly mortgage payment: £1,108
Monthly rental income: £1,842
Annual gross yield: 5.53%
Lender arrangement fee: 2.5%
Consultant: Andy McOwat