It’s always a pleasure to build long term relationships with clients and support them on their finance journey. I recently worked on a case for a client I have arranged a number of mortgages for over the last six months. Originally, he approached us because he was looking for a mortgage advisor who could offer him some long term planning advice, rather than simply arranging a transactional mortgage. We have since built an excellent relationship, so he approached me again for more advice.
My client is an IT contractor with a property portfolio of 12 properties. My client was looking to transfer ownership of four flats from his personal name to his limited company. The flats were held under one tittle and were located in Essex, valued at £665,000.
My client then wanted to release the equity in the property for a deposit for an onward purchase, but he had historic mortgage payment arrears. The property had been converted from a house to four flats without planning permission over five years ago and he had not created individual leases for each individual flat.
I was able to source a lender who was happy to accept historic adverse credit. They were a suitable lender because they have a specialist product for limited companies with multiple properties under one title.
It’s becoming increasingly common that landlords are holding their properties in a company structure, so this lender was open to the deposit coming in the form of a director’s loan or gifted equity rather than the client physically having to deposit the funds into his company. This lender was also able to use the total income from all four properties to assess affordability. This meant my client could release the equity to use for a deposit.
I was able to secure a 3.79% 5-year fixed rate over 25 years on an interest only repayment basis, which was ideal for my client.