Case Study Unusual Property Purchase For A Limited Company Director

The client: Our client, a limited company director, was purchasing a property with two kitchens. This complicated matters as not all lenders will lend on such properties due to the perceived risk of the buyer letting out part of the property.

To further complicate matters, the client needed a lender who would take a share of net profit and salary into account when calculating what she could afford to borrow, rather than salary and dividends. She also needed the mortgage to run until age 75 for affordability reasons, whereas most lenders cap at 70 for self-employed borrowers with no pension income.

This was a complex case that required a lot of digging to find the right lending solution.

Key requirements:-

 

• A lender prepared to lend to a limited company director taking share of net profit and salary into account when calculating affordability.
• A lender willing to lend on a property with two kitchens.
• A lender willing to lend up to the age of 75.
• A lender happy to add the arrangement fee to the loan.

After sourcing the mortgage markets, we identified a lender who agreed to lend the full amount required at a competitive rate.

The application process:

To support the mortgage application, the client provided evidence of her income and identity. We were delighted to inform her that a lender had issued a formal offer for the full amount requested.

 

• Property value: £1.6m
• Loan amount: £800,000
• LTV: 50%
• Term: 25 years
• Rate: 4.86% fixed for two years
• Lender product fee: £999 added to the loan
• Monthly payment: £4,612