Large portfolio buy to let borrowing

Summary of the case

• Client wanted pre-approved lending to expand their property portfolio
• Existing portfolio comprised 29 properties
• Investments were through limited company
• The case came to us during the Coronavirus lockdown

What we achieved for the client

• Pre-approved lending for £6 million
• Borrowing split across two lenders at a maximum loan to value of 75%
• First 3 limited company purchases completed in 10 weeks

The challenges of the case

Our client came to us during the Covid-19 pandemic, mid-lockdown, with the objective of making a significant investment in buy to let borrowing, to grow their existing portfolio of 29 properties.

Our job was to put the client in a strong negotiating position, by identifying lenders who could support these plans. The client wanted to secure a pre-approved lending amount, so that they could go to market knowing they could buy with the funds secured.

We obtained a pre-agreed lending contract with two buy to let lenders. This involved producing a proposal, for review and approval, by the underwriting and credit committee departments of both lenders.

The proposal was approved, which meant that not only did the client know they had adequate funding for their investment plans, but when each property went through the application process with the lender, it was quicker and more efficient.

The client proceeded to buy three properties in their first steps to grow the portfolio, which were a mix of HMO and standard buy to let rental properties.

Plans to grow the portfolio continue and we have a senior, dedicated team focussed on providing a high level of support and pushing each deal through to completion. We are in close contact with the client, their legal team and the lenders to ensure everything runs smoothly.

Using strong buying power to your advantage

Where clients have such significant plans for investment, some lenders offer dedicated high net worth portfolio support. This includes their own dedicated underwriter and bespoke lending deals, not otherwise available to the general market.

How to approach investing in volume

 If you want buy rental property quickly and at volume, it is important to have:

1. A legal team who are experienced in rental property investment
   • The legal process can be very slow and unwieldy without the right practitioner in place. The Commercial Trust process is designed to propel deals forward in an efficient and timely manner, but if your legal team is unfamiliar with property investment, or is not set up to move quickly on your case, you may encounter delays you were not expecting.

2. Professional tax advice
   • Tax is a significant consideration. Mortgage advisors will not be able to advise on this, as it is a completely different discipline. Seek the advice of a professional, qualified tax advisor to understand your position if you are unclear on this.

3. Up to date and detailed records of your current portfolio, including the following for each property:
   • Full address
   • Renewal date of any existing mortgages
   • Mortgage lender
   • Purchase date
   • Current property value
   • Amount outstanding on any mortgage
   • Monthly mortgage payment amount
   • Monthly rental income

4. Up to date business plan, including:

• • Objective for property investment
  • Operating model for managing portfolio
  • How voids are handled
  • Tenant profile
  • Future plans for portfolio

The level of trust in the team working with this client is significant. If you have a similar requirement, please get in touch either via our freephone number or online.

We will always go above and beyond to ensure you get world class customers service.