case studies

BTL purchase with gifted deposit, GL12

client circumstances

Our client was looking to purchase an investment property that required a substantial amount of structural work. His mother had gifted him a deposit of £150,000 but he required a further £120,000 to complete the transaction. The client’s bank would not offer a BTL mortgage with a gifted deposit and as the asset he wanted to buy was not habitable, he was struggling to find an alternative.

MT Finance solution

MT Finance has assisted with numerous transactions where gifted deposits have been a source of funds for investment asset purchases. We provided a £120,000 first charge bridging loan, at 65% LTV on the open market value. Interest was retained at 0.95% over a 12-month term, with no exit fees or ERCs.

the benefits

The client was able to complete the purchase of the BTL property and the 12-month term will allow him time to carry out the structural works. Once the works are complete, he plans to put the property on the market at the higher value, benefiting from the increase in value between the purchase price and the current market value, and redeem our loan.

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