Remortgage Buy To Let Property To Purchase Second Property
Refinance - Large existing buy to let property
Capital raised: £1,014,500
Area: Holland Park, London
This was a project involving the re-mortgage of a large buy-to-let property in Holland Park, London valued at £6.5m.
The client wished to capital raise in order to purchase an additional buy-to-let, but the Holland Park property was his sole investment property that had only been rented out since February 2014.
The relative inexperience of the client was an initial concern for the selected lender but there was an Assured Shorthold Tenancy in place for a 3 year term at £15,000pm (£180k per annum), which gave confidence to the lender comfort to proceed to the next stage.
Although sitting slightly outside the specilaist lender's criteria, the enquiry was quickly passed to their designated Specialist Lending Manager.
There was urgency surrounding this case due to a contract being in place for completion by the 30th April, and the team reacted accordingly to hit this tight deadline.
The product provided based on the client's requirements was a five year interest only deal at 4.20% over LIBOR on a loan amount of £1,014,500.
The case was submitted on the 3rd of April. The loan amount was changed to a lower figure at the last minute but this was swiftly dealt with and the offer was issued 24 hours earlier than anticipated on the 23rd April 2014. The case completed just 5 working days later, hitting the required deadline much to the delight of the client.
This case is a good example of the broker and specialist lender working together under a strict timescale to deliver a clients finance requirement.
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