LTD company multi-unit purchase, M19
Clients required £1.63 million to purchase a block of flats, using a corporate vehicle that already held a huge portfolio. The property had recently been converted into 21 newly refurbished units, and therefore had the opportunity to generate good rental income and yields. The client was given three weeks to complete the purchase and needed to act quickly so not to miss out on this excellent opportunity.
MT Finance solution:
We provided a £1.63 million bridging loan at 56% LTV of the £2.9 million open market value. Interest was fully serviced at 0.89% over 24 months. There were no exit fees, or ERCs, and no personal guarantees were required.
The clients were able to purchase the highly profitable block of flats well within the timeframe. What’s more, the 24-month term gives them plenty of time to rent out the units so they can then refinance with a long-term buy-to-let mortgage, redeeming our loan. If they manage to refinance the property before the 24-month period, the clients will not have to pay any penalty charges or exit fees.