Investors remortgage 4 properties under 1 loan to raise capital for unknown project

A married couple, both experienced landlords and property developers contacted their broker looking to remortgage four of their buy to lets in the South of England.

They wanted to use the capital raised from the refinance to repay their existing lender and fund another development project, which was yet to be determined.

The couple’s broker was finding it difficult to place the case himself because the clients:

  •          Wanted one loan to cover all four properties 

  •          Needed a 10 year interest only term

  •          Were looking to raise capital without having any idea
             of what their next development project would be

  •          The borrowing vehicle is a trading limited company (not SPV)

  •          Limited company borrowing vehicle had a missed payment
             marked on its credit profile

  •          The properties are all deemed complex – a mixture of
             multi-units and flats above commercial premises

With direct access to the specialist lenders we knew we would be able to help as long as we put together a compelling proposal in the right format. We worked with the broker to assemble all the necessary documentation which demonstrated the clients’ extensive experience and showed that the missed payment had been rectified.

We then submitted the application with the most suitable lender and after a little bit of negotiation the following terms were offered:

Combined property value: £3.67m

Loan amount: £2.3m

LTV: 65%

Rate: 3.40% discounted for 2 years

Term: 10 years interest only

Borrower: Trading limited company

Lender arrangement fee: 2% (£46,000 added to loan)

Mortgage payment: £6,516 pcm

Rental income: £12,292 pcm (£147,504 pa)

Gross yield: 7.6% pa

Broker proc fee: 0.5% (£11,500)

Consultant: Gareth Richards, 01732 471627

 

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 us to look at please get in contact with us on 0345 345 6788 or contact me directly at garethr@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.

Consultant