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Limited Company Buy to Let Purchase for First Time Landlord
This is a great case study on how Liquid Expat Mortgages helped a British Expat in Dubai to set-up a UK SPV Limited Company and secure their first buy to let mortgage.
The scenario
We were contacted by a would-be first-time landlord looking to enter the buy to let property market for the first time. The customer was based in Dubai and had spoken with colleagues who had also taken their first steps into property investment.
How Liquid Expat Mortgages dealt with the situation
The customer decided the best route for him was to invest through a newly set up SPV Limited Company and wanted to purchase a three-bedroom terraced house located in a semi-rural area in Cheshire. Whilst enjoying the best of a rural lifestyle, the property benefited from being within walking distance to local shops and very good transport links into Manchester and Liverpool.
Liquid Expat Mortgages became involved very early on and were able to assist the customer with the set-up of the SPV so that obtaining the right time of mortgage would be easier.
The customer had some personal savings which he was able to introduce into the company as a director’s loan, which in effect was the deposit for the potential purchase. The savings were used as a director’s loan deposit which meant he was looking at a 75% LTV buy to let mortgage to complete his first rental property investment.
With this being a first-time landlord application, many buy to let lenders require borrowers to have at least one year of landlord experience. This potentially reduced the number of lenders we could approach. However, we were mindful that we would need to provide a competitive rate so that the rental yield was sufficiently strong from an investor’s perspective so that any profits could be put to the funding of future purchases.
All supporting documentation was gathered by an appointed coordinator led by a specialist expat mortgage consultant. The customer was informed at every stage of the process as to all the requirements.
The result
Using our extensive knowledge of the buy to let market mortgage place and the fact we have been working with expat mortgages since 2007, we quickly identified lenders that would consider a first-time landlord limited company application. As the leading expat broker with the largest panel of lenders to choose from, Liquid Expat Mortgages was able to compare mortgage rates at 75% LTV from several lenders.
Once we’d obtained a clear steer on the rates available, we double checked with the customer about his future buying intentions to ensure maximum flexibility and opportunity for any future purchases. The property was purchased at £164,950 on a 75% LTV which was fixed for 2 years at 2.66%. The rental income was £795.00 pcm and £490.00 repayment per calendar month.
UK Expat Mortgages & Remortgages
No mater where you are currently living or working around the world, Liquid Expat Mortgages can help you secure a high value or private bank mortgage or remortgage in the United Kingdom. Contact us now for a free quote. Our fully qualified and experienced mortgage advisers will advise you on the best mortgage options available for your circumstances.
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