We were approached by a couple, both GPs, who were looking to raise finance against three unencumbered 1-bed flats in Bromley owned by their SPV limited company.
The funds raised would be used as a deposits to purchase more buy to let property.
The couple were slightly concerned that borrowing in the name of a limited company would be very expensive; however, we were able to source a five year fixed rate deal at a very competitive rate by limiting the gearing on each flat to 65% LTV.
Also, the application fee of £400 (including valuation) for each property was much cheaper than that quoted by other lenders which came as a welcome bonus.
All three applications completed without a hitch. Here are the details - the same for each of the three properties:
Property value: £300,000
Loan amount: £195,000
Rate: 3.59% 5 year fixed
Term: 25 years interest only
Lender arrangement fee: £1,999
Mortgage payment: £589 pcm
Rental income: £1,167 pcm
Gross yield: 4.67% pa
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