Limited Company Buy To Let

jahla

Hi All,

I have been in property for approx 5 years, and have a limited company with SPV code, and have a portfollio of 14 properties with a market revised valuation as of July 2009 of £1.2m, and outstanding morgages with woolwich of approx £750k on excellent trackers ranging from 0.29 to 1.49% lifetimes. However we have usually kept a cashflow of approx £150k in cash reserves to purchase new properties, this has now been used to purchase the 2 newest properties one in dec 08 and the other in june 09, the valuation on these 2 properties are £200k.

Am looking for lenders that will enable us to release the capiatal from these 2 properties to enable further investments, and also companies that might look at offering a secure charge on the portfollio to enable other deals.

Regards

John

Rick62

For your existing portfolio you are unlikely to get more finance as lenders are being very cautious on LTVs and your rates are excellent.

For the two new properties you will most likely be able to get funding from a commercial lender, probably 50% maybe 60% with good rental income at about 3.5% over base.

Conrad

In terms of ordinary B2L mortgages for companies, it's a non starter as the rates are above 6%.

Transfering the entire portfolio will again mean a huge rate hike, so no point. Pretty much no one wants to lend to LTD companies for this right now.

I agree with the poster that suggests you try a commercial loan from the likes of RBS / Lloyds etc, but LTV will be max 70% I would think.

I have to say, in light of some big portfolio holders that have gone bust, sometimes slow and steady can be produce better long term outcomes. Why not pay down debt instead of buying more property.

JohnnyM_2

I spoke to RBS recently about borrowing in this manner and they said that the rates and fees would be so high that they didnt even bother quoting me them!!! I told them I was considering the Post Office BTL 6.19% fixed for 5 years £599 fee and they told me to take that!!!

Ridiculous isnt it!