Extortionate Remortgage Product fees

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81875147#Comment_81875147

An SPV created for the purpose, backed with personal guarantee from the director/ owner should be ok.

I think the sell and rent back would be an issue, particularly as you are letting via a company.

Easiest way would be to put your tenant/ house sitter on a proper AST. Take a BTL mortgage on that property, use the cash generated as a deposit on the new purchase by loaning it to the new company as a director loan. Then get a BTL mortgage on the new property to be owned by the SPV.

Accept that sale and rent back may not be possible, you need a legal opinion on whether you could do it. The lender may require that the mortgage starts before the tenancy.

SPV=single purpose vehicle. A company set up for the sole purpose of buying and renting out properties. Its’ articles of association state this as the purpose along with the correct code for this area. 68209 is usually the code.

joAnn

https://forums.moneysavingexpert.com/discussion/comment/81875210#Comment_81875210

Hi, This looks very much like the arrangement that has been discussed, with director loan and current house sitter being moved to AST. I am ok with the sale taking longer for the current owner to find a place, it was really a favour to him and doesn't need to be a formal arrangement, although I do appreciate if it's not formal it can cause issues. Maybe we could have a contract of sorts around the sale and moving out date.

I really want to know if my current circumstances are so restrictive that I cannot go with a lender who has lower fees. If so, what can I do now to prepare myself for a better deal in a few months time.

Thanks for all the feedback!

ACG

I dont think anyone can answer that.

My initial thoughts are that no, I dont think you are that much of a complex case that you need those products. But the devil is in the detail and so I would not want to say your broker is wrong. But I think its too complicated to answer on the forums. You need someone to go through everything.