LTD CO BUY TO LET MORTGAGE WITH TOP SLICING

The Situation

Our client was an experienced landlord who was renovating his main residence gradually over the last two years. He was currently renting temporarily but was offered the rental property below market value due to a strong relationship with his landlord who was looking to sell up due to increasing mortgage costs.

He wanted to purchase the property on a BTL mortgage through his limited company. However, high stress tests & interest rates meant that he couldn’t reach the loan required based on his current deposit on rental alone. He approached us to see if we could find a solution.

 

The Solution

We secured a deal through a specialist BTL lender that would consider the client’s self-employed income through his dentistry practice as a “top up” for the loan. This allowed the client to borrow far more than he would have been able to on rental alone with any other lender.

 

The Process

Top slicing was key for this case as rental stress tests at point of application were extraordinarily high compared to previous years. Additionally, almost every lender in the UK would not consider top slicing when the applicant is purchasing through a limited company.

We reached out to one particular specialist lender who would not only consider top slicing but also consider the net profit of the client’s dentistry business rather than his own personal salary + dividends.

The benefits of this deal were twofold. Firstly, we were able to secure a 2-year fixed rate meaning the client can consider his options in two years’ time when rates may have potentially dropped. This was a key consideration for the client when opting for this deal as alternative lenders could only offer 5-year deals due to stress tests.

Secondly, we were able to secure borrowing that was far superior to every other lender in the UK, allowing the client to retain funds for future projects.

The Outcome

We secured the facility quickly and efficiently allowing the solicitors to complete the necessary legal work to meet the desired completion date. Our client is now able to retain funds for future investment opportunities.

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