Landlords who have a large portfolio of properties often find themselves with a smaller choice of lenders, but it’s our job to leverage the most cost-effective finance for the clients to free up capital for further refurbishments or purchases.
Our objective was to re-mortgage 18 buy to let properties equating to 78% of the client’s total portfolio, which was just short of £2m of new lending against an estimated value of £4.2m, but all with the same lender for overall ease of portfolio management.
However, there were several challenges:
• The client was 74 and wanted the longest term possible
• 7 of the 18 properties were on the same street and some even next door to each other (semis or terraced)
• Many lenders are averse to the concentration of properties on one street, especially when they are side by side
• Being a large portfolio landlord, again meant choice of lenders was limited for our client
We contacted the client 6 months before the end of the Early Redemption Charge period and discussed his requirements in full. The application took some time and as the ERC period came to an end, we applied for a 3-month extension. This avoided the recent Bank of England base rate rises as the new rate was secured earlier with the application made already the new lender.
The client was very satisfied with re-mortgaging his whole portfolio and taking advantage of a low fixed rate to anchor property investments.
The application went very smoothly, and it helped considerably that our client was well organised with details and documents relating to the mortgages in held in his portfolio.
As we mentioned above, the client was very well organised and by providing us with the details and documents quickly, we were able to complete the process smoothly.
Here’s a quick checklist of items to be prepared to provide us or your adviser if you ever wish to refinance part or all of your portfolio: –
• Full property address(s)
• Property Type
• Current Value
• Mortgage Balance
• Current Rent
• EPC for each property
• Original Purchase Date
• Leasehold – length of lease and amount of service charge and ground rent if paid
• Details of Current Income –
• Bank Statements – Last 3 months sufficient to show rent paid in and mortgage paid out
Are you looking for a similar type of property finance?
Try Financial have extensive experience finding residential and investment property finance for the UK market.
Please call us to discuss any aspect of investment property finance purchase or re-mortgage on 0330 055 3732 or by emailing firstname.lastname@example.org.