Location: Sennen, Cornwall
Loan Amount: £393,750
Finance Category: Development Finance
A property developer and investor based out of Penzance contacted Fox Davidson.
They were about to complete the build of three properties in Cornwall, 2 of which they had sold off-plan and the third they wished to retain and rent out as a holiday let.
They wanted to finance the property at 75% loan-to-value.
Aside from the property being a new build, the main challenge was that the property was owned in a limited company, which technically had been trading as it had built and sold two other properties.
This can cause issues for some lenders, as they prefer simple SPV limited companies set up just for renting property.
The client also intended to use Airbnb to rent out the property with a local Airbnb agent running the handovers and cleaning.
We put together a strong case for lending and approached a lender that was new to the holiday let market.
We explained the situation and the fact that the SPV would no longer be trading apart from an SPV for letting property.
The holiday home was of such a high quality and the client’s experience and net worth meant the lender was able to grant an exception.
We secured a mortgage product at 75% on an interest-only basis at 4% fixed for 5 years, with no valuation or legal costs as these were paid for by the lender.
The loan went to offer in three weeks and the lender’s solicitors were excellent and we had funds in the bank for our client within seven weeks from the initial enquiry.
If you had looked at the lender’s website under ‘criteria’ this would have usually been a decline.
It goes to prove that having good relationships with lenders and presenting a case in the right way can have a positive outcome, that’s something we do very well at Fox Davidson.
Fox Davidson are a specialist holiday let mortgage broker including holiday let mortgages for Airbnb properties.
We have offices in Bristol, London and across the South West.
Email firstname.lastname@example.org or call us on 0117 989 7950 to discuss your holiday let mortgage options.