The most straightforward buy to let property finance applications are often more complicated than residential mortgages. Bring offshore companies and specific requirements – like needing a high loan to value (LTV) mortgage – into the mix, and arranging the desired outcome can become very tricky indeed – as this client found out before approaching Articus Finance.
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The client:
This client was a high net worth individual (HNWI) with extensive experience in UK property development. Accordingly, he already had a large portfolio both of developments and of buy to let investment properties – so he was extremely savvy in this area, and had very specific requirements as a borrower.
He had recently completed a development of a property in London, valued at three quarters of a million pounds. The client had since decided that, rather than selling this property on, he wished to retain it as a buy to let investment. He would therefore need to refinance from development finance on to a buy to let mortgage.
However, this development was owned in an offshore vehicle – so this client effectively wanted to refinance this property to bring it onshore, which can be a complicated process.
The solution:
In difficult cases like this, approaching an appropriate lender is crucial to avoid a rejected mortgage application. After this client sought out Articus for help, we spoke to a lender specialising in buy to let property finance.
The lender also had experience with intercompany property transfer, which we knew from working with them in the past. They were therefore happy to progress with the application and we were able to secure a resolution for the client – a five-year fixed-term mortgage on an interest-only basis. This was at a high LTV, as the client requested.
All in all, this was an ideal outcome for the client, who looks forward to growing his portfolio further in the future.
The case in brief:
- HNWI developer with property portfolio
- Refinance from offshore to onshore ownership
- Five-year fixed term basis
- Interest-only mortgage