Commercial mortgage for holiday let landlord
A returning client, an experienced landlord-cum-developer, approached us for help in refinancing a large, newly built holiday let that he had funded with savings and a short term loan.
The property is a 6-bed house with four bathrooms located in Wales. Although an experienced developer and landlord, the client had only just started taking bookings for the holiday let, which would limit the number of lenders we could approach for finance. However, in the client's favour:
- The holiday let is in an area of high demand
- The client has a strong income
- The client has a large portfolio of rental properties (including holiday lets)
- The client has been a landlord for more than 15 years
These factors meant we were able to obtain the following offer from a high street lender.
Property value: £750,000
Loan amount: £250,000
LTV: 33%
Rate: 3.25% term tracker
Term: 15 years (1 year interest only & 14 years capital & interest repayment)
Lender arrangement fee: 1.5% (£3,750)
Mortgage payment: £625 (for 1 year) £1,400 (for remaining 14 years)
Rental income: £61,600 pa based on:
High season (10 weeks at £3,100) £31,000
Mid-season (7 weeks at £2,200) £15,400
Low season (8 weeks at £1,900) £15,200
Gross yield: 8.2% pa
Consultant: Peter Barnes, 01732 471641
This is just one example of how we have helped secure finance for a client. If you have a similar scenario or something you'd like me to look at please call my direct line as detailed above or email me at peterb@mortgagesforbusiness.co.uk.
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
4th January 2017
