Finanace Options For Portfolio Expansion

  • Filter
  • Time
  • Show
Clear All
new posts

    Finanace Options For Portfolio Expansion

    Good Morning

    Bought a property every year through the same limited company for the last three years.

    Looking to increase this to two property's a year this year. Has anyone on this forum taken out a long term loan through a limited company to finance further expansion deposits ?

    Many thanks

    Unless you obtain a commercial banking facility at what may be higher rates than market norms,it is quite straight forward to obtain BtL mortgages , each loan secured on the property being acquired; I would add further that at least one lender once a track record has been established will consider a Forward Buying Facility whereby the application process is streamlined and designed to facilitate a quick process from having agreed a purchase to obtaining funding documentation to enable a speedy exchange of contracts, you will , once a record has been established, have to jump through the full application for a facility but once achieved it is an invaluable tool.
    In the current market lenders are offering very competitive rates on Limited Company lending.


    Latest Activity


    • Higher rate loans
      I have sourced a loan which is a second charge taken across the remaining equity in my property portfolio. My portfolio is at approximately 75% LtV. The gross value across 5 properties is £2.2m with outstanding mortgage balances of £1.5m soon to rise to £1.7m. I am hoping to release approximately...
      21-10-2019, 14:48 PM
    • Reply to Higher rate loans
      From what I understand the second charge is levied against individual properties until the required funds are raised. I.e. £100k against property 1, £80k against property 2 and so on. The lenders I currently use (BM and Aldermore) allow second charges as I have had them previously. If I was to move...
      22-10-2019, 07:53 AM
    • Reply to Higher rate loans
      I agree completely with JPKeates, it is a matter which taxes any broker when clients are seeking to release equity but their present lenders do not offer further advances; I suspect that you have already investigated this and have been redirected to a type of lender of last resort” who creates a legal...
      21-10-2019, 15:38 PM
    • Reply to Higher rate loans
      Are you sure your mortgage lender will consent to a second charge on the portfolio?
      I think the question might be academic, because I'd be amazed if they would.
      21-10-2019, 15:06 PM
    • Moving back in to BTL purchased under company
      Hello everyone,

      If a house is purchased under a company with BTL mortgage, is it possible later on to switch to residential mortgage so that the company director can stop letting it out and use it as main residence? Does residential mortgages for companies exist? Will it have an exorbitant...
      14-10-2019, 18:52 PM
    • Reply to Moving back in to BTL purchased under company
      Residential mortgages are for "owner occupiers". A company is not "occupier" like a person occupies a residential property,
      21-10-2019, 09:35 AM
    • Pay off residential with buy to let

      First poster here looking for advice, this is our situation. We have one buy to let property mortgaged at £40000 and worth around £130000 and our home with a £65000 mortgage worth around £190000. We are looking to move house but keep both properties. Would it be wise to paid...
      15-10-2019, 19:42 PM
    • Reply to Pay off residential with buy to let
      On a personal level I believe you have made the right decision. Best of luck going forward.
      21-10-2019, 05:39 AM
    • Reply to Pay off residential with buy to let
      Oriiginal poster here. Thanks for the great advice. After careful consideration we have decided to raise capital from remortgaging the buy to let to pay our residential mortgage off. I think the safety net option is best. Gives us exit if required in the future even though it goes against my instinct...
      20-10-2019, 22:45 PM
    • Borrowing against property to invest in shares etc
      New here, just wondered what people in property thought about borrowing against a BTL property, to invest in shares (either plcs or start ups) - so relatively risky but big growth potential.

      Is it a totally crazy idea, or perhaps not, if you can afford the interest payments, and you accept...
      17-10-2019, 08:40 AM