11:28 AM, 5th February 2019, About 2 years ago
With jitters that prices may drop, but still with plans to buy later this year (at reduced prices?), some of our landlords are now capital raising and releasing what they can based on the current (highest?) values, and then planning on using those available funds to snap up the opportunities when they come their way.
Many portfolios currently have eligible equity that can be released, safely stored and then – when the time is ripe – the funds can be quickly called upon to secure property deals.
With sufficient funds available, the ‘need for speed’ can be overcome and instead of having to wait for a whole new (and now, much longer drawn out) mortgage application process to be underwritten, at a time when maybe time is of the essence, they can confidently make offers, secure the profit (growth? and/or income?) and add to their portfolio.
One of the issues, however, with some of the banks is that they want the ‘onward-purchase’ address at the time of the remortgage application, but we know who those lenders are and we also know which lenders are the most flexible and sympathetic for portfolio landlords to speedily arrange these ‘war chest’ funds.
Other requirements to consider as part of the new mortgage arrangements are:
I was also at a mini mortgage expo last week and speaking with Kensington Mortgages, who reminded me how they can assist with landlords building a war chest.
They treat each SPV (limited company) as a separate entity and combined property ownership does not count towards portfolio rules, ie if you own 3 in your personal name and 3 in an SPV, that does not equal 6 and fall in to the portfolio underwriting. In fact, you can have as many SPV’s as you like as far as they are concerned.
They lend up to 85% LTV – up to 3x mortgages / properties per entity!!! ie – if you have 4x SPV’s and only 3x properties in each, that means they could lend up to 85%LTV across 12 mortgages
Contact us using the form below and we can asses your current situation, future needs and we’ll make our professional and insured formal recommendations.
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