Case study – Landlord who wished to purchase a new BTL property under a Ltd company structure

27th Jul 2022

Customer Profile

The client was a Large portfolio Landlord who wished to purchase a new BTL property under a Limited company structure

Scenario

The client wanted to purchase a new BTL Property under a Limited company structure with a purchase price of £252,000, The valuer went out to the property and deemed that the property was not lettable day 1. 3mc challenged the valuer but could not get this overturned.

3mc solution

The solution required a specialist refurbishment product which consisted of a light refurbishment bridge with the surety of exiting onto a term 5 year fixed BTL product once the works have been carried out.

The benefit of the refurbishment product with Precise is that once the works have been carried out while the bridging finance is in place, the next step is for a re-inspection to be carried out by the valuer, who will confirm the new open market value taking into account the works that have been carried out.

We then have the opportunity to capital raise on the property based on the new open market value, the client chose to raise up to 75% of the new market value which will pull funds out to cover the costs of the works and the bridging costs.

Result

The end product is a fully refurbished property with the client being able to re-coup most of the costs of the refurbishment within 6 months of the original purchase date.

Precise mortgages were the chosen lender for their Refurbishment buy-to-let product.

Purchase price £252,000

Open market value once works carried out £275,000 – £300,000 with the opportunity to remortgage at 75% of the confirmed value.