BTL LANDLORD CASE STUDIES

A 39-year old sole director of a Ltd Company set up to manage his buy to let portfolio wanted to add to his investments using the value created in three properties that were renovated in the six months he’d had them.

Four applications, three remortgages at 75 per cent loan to value and one purchase at 80 per cent loan to value later the engineer had increased his portfolio from three to four properties, a mix of two and three-bedroom flats in Glasgow. The average rental yield on the four properties is 9.3 per cent and the five-year fixed rates mortgages ranged from an initial rate of 3.99 per cent to 4.72 per cent.

When a Chester-based 42-year old wealth manager wanted to increase his portfolio of buy to let properties from four to seven he used a family gift and personal savings to buy three new-build one bedroom flats through a limited company of which he is a sole director.

With an average rental yield across the three properties of 5.38 per cent the mortgages were granted at 75 per cent loan to value on a five-year fixed rate loan at 3.65 per cent.

A combination of Ltd company and individual BTL provided just the right mix for this 46-year old Buckinghamshire-based landlord with an appetite for expansion.

Six Ltd Company remortgages, five standard BTL and one HMO, plus two individual remortgages on the mix of three and four-bedroom terraces houses with an average LTV of 77 percent provided the £600k capital the professional landlord had earmarked to grow his portfolio. All of the mortgages were five-year fixes with an initial rate between 3.70 to 4.55 per cent and a rental yield ranging from 4 per cent to 7.04 per cent.

With a portfolio of four HMO’s and one BTL this 45- year old professional landlord saw an opportunity to expand but needed to release capital before she could make her next move.

Refinancing the whole portfolio, which is made up of three-bed mid terraced houses, at 75 per cent LTV for three of the properties and 50 per cent LTV for one of the HMO’s gave her the £228k she needed. The five mortgages had an initial rate of 3.75 or 3.65 per cent on a five-year fix with an average rental yield of 7.98 per cent.

With 122 properties this Irish husband and wife team wanted to raise £400k to grow their portfolio. Ten properties, a mix of two and three-bedroom terrace and semi-detached homes, in Bedfordshire and Hertfordshire provided the means.

With total borrowing of £2m at 75 per cent across the ten properties the couple, in their sixties, secured the capital and moved a step closer to their next investment. All ten mortgages were granted on a five-year fix with an initial rate of 3.59 per cent and rental yields ranging from 4.05 to 4.98 per cent.

A Ltd company remortgage on four unencumbered properties that were part of a portfolio of 219 provided this Ltd company family business, consisting of mum and dad 67 and son 39, with the capital to expand.

Remortgages on a two-bed flat at 75 per cent LTV, a two-bed flat at 65 per cent LTV, a two-bed mid-terrace at 75 per cent LTV and further two-bed flat at 75 per cent LTV in the Hampshire and Kent commuter belt provided the cash they needed to grow their property empire. All four mortgages were five-year fixed rates with an initial rate of 3.65 or 3.70 per cent based on an average rental yield of 5.44 per cent.

Two five-bedroom terraced houses of multiple occupation (HMO) in Milton Keynes held the key for a 36-year old self-employed secretary with a portfolio of 19 BTL properties.

Remortgaging in a Ltd company structure at 75 per cent loan to value released £135k giving her the freedom to grow the portfolio. With a rental yield of 12.2 per cent on both properties the five-year fixed rate mortgages both had an initial rate of 3.75 per cent.