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Portfolio landlords raise capital on ex-LA 8-bed HMO

Portfolio landlords raise capital on ex-LA 8-bed HMO

Summary: Two business partners with a joint portfolio of over 20 buy to let properties, looking to raise capital on a recently refurbished HMO.


The capital raised would be used to repay the loan taken out to fund the refurbishment works. The pair were also hoping they would be able to raise enough to invest in a further buy to let property.


Both applicants receive a low income – one earning less than £25k pa (solely from rental income), the other receives a pension of £15k in addition to rent from his properties.



Why Keystone?

✔  No minimum income
     Many lenders impose a minimum of £25k pa


  Rent as income
     Some lenders prefer landlords to earn income in addition to the rent


  HMOs up to 8-beds
     Many lenders will only go up to 5-beds   


  Ex-Local Authority properties
     Not a lot of lenders will accept ex-council properties



Broker proc fee: £2,888 (0.7% of loan amount)


Property value: 

Loan amount: £412,500

LTV: 75%

Rate: 4.19% 5 year fixed

RTI: 145% @ 4.19%

Term: 14 years interest only

Lender arrangement fee: 2% (£8,250)

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