An interesting deal we've recently worked on involved a limited company seeking to refinance five townhouses in Ramsgate, Kent, from a high street lender.
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div>An interesting deal we’ve recently worked on involved a limited company seeking to refinance five townhouses in Ramsgate, Kent, from a high street lender.
All five properties were let on separate Assured Shorthold Tenancy agreements (ASTs) but were on one title, and were built and managed by one of the applicants. The total rental income received per annum on all of the properties was £59,000 and the client needed to raise 62 per cent LTV.
The applicants were two Directors and 50:50 shareholders. One was an experienced property investor who owned a portfolio of other residential and commercial properties in Kent with a net worth of £1.85 million. The second applicant was an experienced builder and property investor who owned 13 residential and commercial properties.
As the rental provided adequate coverage, and both Directors were experienced property investors and high net worth individuals with good credit statuses, we were comfortable proceeding with the application for our Residential Investment 1 (RI1) product on a 5-year, interest-only basis.
At the valuation stage the surveyor confirmed that each of the houses could be sold individually without splitting the title and that we could rely on the market value figure of £1.14 million. With a good level of demand suggested for all individual units, the case was ready to proceed at a slightly higher LTV of 69 percent (£786,237).
The Pure Law team swiftly picked this case up, ensured it did not lose traction and maintained momentum until completion. Nigel Barrington, of B & P Finance, was very pleased with the service, noting that: “Pure Law were extremely helpful with the processing on this case and instrumental in resolving a legal issue with the title – a true testament to going above and beyond to ensure cases make it across the finishing line”.
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