Some landlords are searching for unusual or distinctive houses to help them get the most out of their investment. Our client wanted to acquire a London high-rise apartment in a 40-story building. We assisted them in obtaining their mortgage by working with the developer, lender, and surveyor.
Our client was a foreign national with the right to reside in the United Kingdom. To diversify his assets, he wanted to invest in property and discovered an apartment in a new high rise building in London that he felt would offer him the best return on investment, but he ran into trouble when attempting to secure the mortgage.
Our client reached out to us to help him, we gave him some buy to let tips - he comfortably had the 25% required, exceeded the income criteria and the estimated rent could easily cover the stress tests that lenders apply.
Despite the strong position our client was in, there were a number of things that made the case complicated. The first was that our client's deposit funds were being transferred from an international account and so we needed to undertake additional checks to adhere to legal requirements.
Secondly, the apartment was still under construction so valuation was difficult and regulatory requirements were still to be passed.
Finally, despite the rental value being more than enough to cover the mortgage, we needed to show that our client could afford to cover this mortgage with his own income should he not be able to rent it out for a period of time.
How we helped
After a series of meetings with our client, we began work to identify suitable lenders for our client's criteria.
Once we had a list of 3 or 4 potential lenders we began building a case for our client and using our contacts with these lenders we started to discuss what options were available to them.
We found out what each lender required to help with the case and with our client's permission we liaised with the developer to collate the information and documents needed and began the process of satisfying each area requested.
After a couple of weeks of discussions with lenders and the developer, we were able to get a decision on principle from two lenders and after going through the numbers with our client were able to proceed to application.
After just 10 days we received confirmation of the formal mortgage offer and our client was able to secure the property in the development. By the end of 2021, we expect our client to take possession of his apartment with his first tenant already lined up to settle into their new home in February 2021.
We were delighted to help Mr B secure his mortgage on his apartment. We work for our clients and will go the extra mile to help them secure their mortgage, whether it be for a London apartment or that terraced house in Leeds - we'll help them secure the right mortgage for their needs.
We're here to help
If your considering investing in a buy to let, let us know. Our team can offer expert advice that will suit any circumstances like Mr B's investment opportunity!
It makes sense to talk to a qualified mortgage broker. Call us at The Mortgage Stop today, tel: 01794 379379 or you can email us on: firstname.lastname@example.org.
Your property may be repossessed if you do not keep up repayments on your mortgage. Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority