Expanding a portfolio with flats above commercial

A landlord with a growing portfolio of four buy to let properties wanted to expand their investments in London’s competitive rental market. They found a property in a high-demand area, featuring three flats above a commercial premises – a unique setup with great income potential.

About the properties:

• Two standard residential flats for individual long term tenants, ideal for stable monthly rental income.
• One flat is designated as an HMO under an additional licensing scheme, accommodating multiple tenants.

As a full time property investor, the landlord’s only income came from land and property, which some lenders were hesitant about due to the absence of traditional employment income. However, with ownership of four or more buy to let properties, the applicant’s experience and proven track record met our criteria.

We were able to complete lending and offer a 75% loan to value, helping them diversify their portfolio in a prime location with a steady and varied income stream.