Our client had two buy-to-let properties for which he had trouble finding a mortgage lender, as they had unusual legal statuses on the land registry/deeds.
Both properties are flats which are usually set up on a leasehold basis, to a freeholder typically in a management company. This was not the case for the properties as they both were the freeholders to each other. Therefore, the upstairs flat technically was responsible for the downstairs property, and vice versa.
The client also has a portfolio of around 10 more properties, which currently do not have any mortgages on.
We needed to find a lender who was happy to consider the legal status of these properties, on the basis they are providing loans on both at the same time.
The client also advised that he wanted to grow his portfolio but was unsure how to achieve his goal. This gave us two challenges to meet. Firstly, despite the unusual situation with the two flats, we sourced a lender who was prepared to lend on the two flats simultaneously.
Secondly, we then found lenders who could raise additional money on the client’s existing buy-to-let properties. Through ‘gearing’ these properties he was able to take out the equity of the existing buy-to-lets and buy more properties to grow his portfolio from 10 to 15.
Through our work to find the right lenders for our client, he has achieved his goal of increasing his portfolio.
In addition, the mortgage payments are lower than the rental income made from these properties which means he has further increased his monthly income.