Remortgage of Buy To Let

The client sourced an off-market property through an estate agent. The seller wanted a reliable buyer and agreed to sell the property at a Below-Market-Value amount of £115,000. The property was on the main road but was much larger than neighbouring properties but the client identified an opportunity to add value. The client purchased and tenanted the property. We were approached to deal with the remortgage of the property after the initial 2-year term had come to an end. Some recent nearby comparables of similar sized properties were now available and we successfully received a mortgage valuation of £160,000. We arranged a 75% LTV mortgage against this valuation.

Doncaster HMO

Our client was purchasing a spacious 3-bed property to convert to a tenanted 5-bed-5-ensuite HMO, generating a gross income of £20,000pa. The conversion allowed an investment valuation rather than pure bricks and mortar.  We approached a specialist lender who had appetite for this model. The client agreed the purchase of a 3-bed mid terraced house in Doncaster for £80,000. We arranged a Refurb-To-Let product whereby the loan covered 70% of the purchase price and 70% of the £45,000 works to convert the property. As part of arranging these terms, the term-out mortgage was also agreed upfront based on the initial surveyor’s commercial valuation of £170,000. The term out loan was £122,500 based on this valuation.

Sheffield flip​

A bridging loan was put in place for the purchase of a 3-bed property secured at a discount due to a short leasehold title and the need for complete renovation. The developer directly approached several lenders themselves, but were only being offered a maximum of 55% LTV due to the short leasehold title in place. We secured terms for 75% of the purchase price, which was sufficient to enable the developer to use their own funds towards purchasing the freehold and refurbishing the property. The property was fully refurbished and converted from 3 bedrooms to 4 bedrooms. The sale of the property was agreed at £239,000, nearly double the purchase price giving a healthy profit and an 80% Return on Funds Invested – a project which would have been turned away had the 75% LTV lender not been sourced.

Development finance​

Our client was purchasing an office building in the West Midlands which had prior approval granted to be converted to 21 1-bed flats. The purchase price for the freehold title was £400K + VAT with conversion works estimated at £750K plus professional fees of £25k. We arranged finance for 60% towards the purchase price plus 100% of the works on a staged payments basis and 100% of the professional fees. Our presentation of the client’s strong track record enabled us to agree favourable terms including an interest rate of 7%pa over the 18-month facility. The client’s intended exit is to sell all units with a plan in place to sell a proportion of these off-plan during the conversion works.

Commercial property purchase​

The client purchased a high street retail unit in cash as an investment property. They had been approached by two tenants, the first of which was a national brand, whereas the 2nd was a local business looking for an additional outlet. The national brand offered significantly less rent, a shorter lease term and generally more stringent terms than the local business. Luckily the client approached us before agreeing a lease and we were able to advise that the commercial mortgage terms would be more favourable with the national-brand tenant. We assisted the client in weighing up each scenario and they proceeded with a commercial mortgage with the national-brand tenant in place. It is important to note that this would not always be the correct decision, but we can advise on a case by case basis.