Our client, an experienced property investor sought to acquire semi-commercial/multi-let unit. As he had no cash to put into the deal, he offered two properties already owned (one was semi commercial) as collateral-both of which were already mortgaged to a high street Bank. Further complication was that some of the residential units in the new purchase were small – less than 30sq metres each in size which often puts off lenders.
We were able to:-
Place the two properties already owned with two different lenders ( in order to optimise rates/terms). This allowed him to raise 75% LTV on both, repay the bank and at the same time actually reduce the rates he paid and lower his monthly loan servicing cost;
Source funding for the acquisition from a third lender at 75% LTV despite the small size of some of the units;
Rates were around 5.4% fixed (5 years) for all three properties and the client took an interest only servicing option with the option to repay 10% per annum without any early repayment penalites;
The title to two of the properties concerned was complex. Key added value in the case by constant liaison between clients solicitor and lenders solicitor as well as the lenders themselves, thus expediting a much more rapid completion than would have been the case.
Following completion, the client said of the team at Key “Thank you for your time and professionalism – It’s much appreciated”.