Client circumstances:
Our clients wanted to purchase a purpose-built flat via their limited company – a property management business – which they intended to let out. Being foreign nationals with permanent UK residency, they aimed to fund the deposit through an inter-company loan. Since they were both first-time buyers and first-time landlords, high street lenders may have been hesitant to accept their application. To address these circumstances, our broker contacted our buy-to-let team for a specialist approach.
MT Finance solution:
We approached the case pragmatically and took a common-sense view of the application. Despite the applicants’ lack of experience in purchasing, they both had extensive business experience – including running other companies – that gave us the confidence to proceed.
We paid particular attention to the inter-company loan, which came from two companies. One applicant was director of one company but neither applicant were shareholders or directors of the other. Therefore, it was vital that we received a formal loan agreement that had been reviewed by the relevant shareholders and solicitors. Once we ensured that all appropriate documentation was in place, we proceeded with the application and in just over three weeks of issuing the offer, we completed a buy-to-let mortgage of £259,607 at 59.9% loan-to-value of the property’s open market value of £433,480. We set the term for 25 years.
The benefits:
Our help enabled our clients to purchase their first buy-to-let property, which they envision as the start of their property portfolio. They will now generate a new income stream for their company – not only does this provide them with added financial stability, but it also opens opportunities for future growth and expansion.
Find out more:
If your client is in a similar situation, please don’t hesitate to get in touch. As a solution-driven lender, we look at each case on its individual merits and work collaboratively to deliver the best possible outcome. Drop us a line find out how we could help.