Loan Amount: £725,000
Finance Category: Commercial Property Finance
An experienced property developer in Exeter builds houses and flats and retains them in their portfolio. Our client had just built a block of 11 flats in Exeter and wished to retain them. We discussed the pro’s and con’s of placing the property into leasehold titles vs keeping the unit under one freehold title. Our client decided to keep the property under the freehold title and required a 75% loan-to-value mortgage on the freehold block.
Securing a mortgage on 11 flats under one title was not an issue, as we work with funders who will comfortably lend on up to 20 units. The issue was that one of the flats was measuring 29.5 sqm, which was an issue for some lenders. Also, the client wanted to ensure that the valuation didn’t shave off 10% of the value compared to the value of 11 individual leasehold units.
With access to specialist buy-to-let lenders, we knew which lenders would be pragmatic in their approach to this property. We secured funding for the SPV ltd company at 75% loan-to-value, at a fixed rate of 2.95% on an interest only basis.
We were able to speak to the panel of surveyors the lender used and had conversations about expected market values for a multi-unit freehold block (MUFB). Our client was happy with our investigations and conversations with the surveyors and, lo and behold, the property came in at the expected value.
For more information buy to let mortgages on multi-unit freehold blocks of flats, please contact a member of the Fox Davidson team: Email email@example.com or call us on 0117 989 7950.