Why you can still get a loan with an unusual buy-to-let
Not all buy-to-let investments are straightforward. It might be an unusual borrower or property and landlords may think that they cannot approach a broker or lender for finance because they will automatically be refused. However, this is not the case and we can often help investors, even if they have unusual circumstances. Here are some situations where we may be able to help.
1. Mature investors
When it comes to buy-to-let mortgages, all lenders have upper age limits at the time of application but some lenders do not have upper age limits with regards to the length of the loan term. This would mean, for example that a 69-year-old applicant can obtain a loan with no limitations on the mortgage term.
2. Special Purpose Vehicles
You can borrow through a Special Purpose Vehicle in exactly the same way as through a limited company or as an individual. There is no waiting period – you can borrow in that company’s name as soon as the company has been officially formed (please note that company must have a category code relevant to the industry) and you have the company registration number and a business bank account.
3. More than one unit on the same title
Most often this occurs when a property has been converted into several units, for example a house into flats and the owner has not or does not want to put each one on a separate leasehold title. While high street banks can be uncomfortable with this situation, specialist lenders have more of an appetite for this kind of deal.
4. Re-mortgaging with fewer than 60 years remaining on the lease
While most buy-to-let lenders insist on at least 60 years left on the lease, some lenders will allow borrowers to re-mortgage a property until the lease has 55 years left. For example, a lender will allow you to re-mortgage when the loan has 60 years left, for a maximum of 5 years. However, during that time it is usual for the lease to be extended.
5. Flats above commercial/retail premises
Lenders can be wary of lending against residential property above/next to commercial or retail premises, but there are lenders who are happy to lend to experienced investors for these kinds of properties, subject to positive general market conditions in the chosen area.
6. No minimum income
Although rental income is required, some lenders do not require a particular level of personal income. However, proof of personal income may be requested to support an application.
7. Grade II listed buildings and thatched properties
Above all, lenders want to see experience when it comes to approving a buy-to-let loan on these specialist properties. Working with listed buildings particularly on a buy-to-let basis requires specialist knowledge. Lenders will not approve loans to buy-to-let investors who have not maintained this kind of property before.
If you would like to find out more about obtaining finance for any of these situations, get in touch on 01923 655 441 or by email at contact@cpcfinance.co.uk.