Buy to Let Remortgage to Capital Raise for Older Borrower

THE SCENARIO

I recently secured a buy to let remortgage for a long-standing client of Enness whose age was making it difficult for him to find a lender.

My client in this instance was a 79-year-old professional landlord. He owned and operated a property services company and had his own portfolio of 8 buy to let properties, all located outside of London. We had organised financing for him in the past, but this time was slightly different.

He wanted to remortgage one of his buy to lets in order to capital raise. The property, located in Berkshire, was worth £450,000, and he was looking for a loan of £300,000.

There were three immediate difficulties. The first was his age. He had approached several lenders, none of whom were willing to issue the loan to someone approaching 80. My task was therefore to find a lender who would take a more favourable view of his situation.

The second problem was that my client hadn’t yet made a final decision on what to do with the money. With capital raises, lenders generally want to know exactly where the money is going so that the funds can be followed. He wanted to have the option of purchasing a plot of land or a property, but hadn’t found exactly what he wanted yet; thus we needed to find a lender who was comfortable releasing the funds without that assurance.

Last but not least, my client wanted the whole process completed within a tight timeframe. He was looking at a couple of investment options which had looming deadlines, and needed a quick decision. He therefore needed the funds as quickly as possible to give him that flexibility.

With these three factors in mind, I set about finding a lender who would accommodate his requirements as quickly as possible.

OUR SOLUTION

I managed to find a lender who would overlook my client’s age, and agreed to the loan on a 5 year variable term at a rate of 3.49%. The whole transaction was completed incredibly quickly, and my client was over the moon.