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Rooms In Cardiff firstname.lastname@example.org | Guaranteed Rent | Low Cost Management £50/month |Pay As You Go HMO Management | Cardiff Letting Agents & Property Managers | Delivering Double Digit Net Property Returns
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Lisa All comments are for education and information purposes only and do not construe as advice or a financial promotion. No liability is accepted for comments made. If you wish to receive information in an advisory capacity then please contact me about becoming a client. www.keys-mortgages.com
(24-08-2012 08:29 AM)Kevin Wright Wrote: From what you have put so far Mark, I think you have a very good chance of obtaining finance from a commercial lender
As you may already know TMW cap the number of tenants in a multi-let at 4, so bear this in mind for any future deals you do.
BTL lenders want non-property dependent income, so you would not meet that requirement, apart from TMW as you already know. Have a look at commercial lenders but building up a few more with TMW is not necessarily a bad thing, especially on their Light Refurb product.
For commercial lenders, are you not classed as a professional landlord? You can prove your income, you have a rental income of £78,480 pa, less expenses; plus you have a track record as a landlord which commercial lenders require. You say, I do not have any books that show this, why not as you are required to declare this income?
You have the added advantage of being able to throw in your unencumbered property as additional security to a lender, which will increase your credibility and purchasing power with a commercial lender.
If you buy properties, then refurb them and convert to HMO, you may find commercial lenders less willing to take them from the off as they prefer to lend on properties that are rentable from the start.
However, you can bridge to begin with then take out the bridge with commercial finance, no silly 6 months rules in the commercial world. I often put these deals together for clients.
You can forget approaching the main banks for finance, they are not remotely interested in lending for this purpose right now. In fact, they are doing the reverse and calling in loans of this type.
However, there is a small group of second string lenders that are actively looking for well capitalised, experienced landlords looking to grow their portfolios. You can borrow up to 70% on commercial.
One question would be, who are the owners of your properties, you personally or your Ltd Co?
Another question commercial lenders would want to know would be, where will you find the required 30%+ deposits from, other liquid capital or equity from your existing properties?
(24-08-2012 09:52 AM)Adam Hosker Wrote: has 20 HMO products available today from 4 Lenders. Three of the Four require No Minimum Income (but proof their is some income) and the Other requires One applicant to have £25k.
Up to 80% LTV if you have £25k income.
Up to 75% LTV if wish to proceed on No Minimum Income.
P.S. One of the lenders is semi-exclusive to us, unlikely to find elsewhere.
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