Semi-commercial, limited company & refinancing
The borrower
Marlena, an experienced landlord, has been actively diversifying her asset classes within her portfolio while capitalising on stronger rental yields.
She currently operates a 19-bed HMO across four flats, situated above a pizzeria in the Midlands.
Marlena sought to refinance this property that is held in her limited company, which is part of a larger group structure. The holding company maintained 100% ownership of this company.
Her aim was to refinance an existing loan and secure additional capital for future portfolio expansions.
How we can help
We can consider up to four directors and unlimited shareholders on a limited company structure to allow for more complex setups.
This flexibility extends to how we allow intercompany loans to fund deposits for future purchases; we also don’t require companies to mirror shareholding to allow intercompany loans as a source of deposit.
On semi-commercial, we require the rental and overall value of the property to make up at least 60% of the total for us to accept.
We will include the rental from both the residential, in this instance, the HMO income as well as the commercial element downstairs; we are flexible to what the nature of the commercial element is too, so we are able to consider those that have restaurants, hairdressers etc downstairs, which gives customers the comfort that we are here to support with their more complex and niche property transactions.
We love to talk a case through, why not call your Foundation Regional Area Manager today?