The borrower
An experienced property investor approached Investec when he wanted to purchase a block containing nine residential units in London for £4m, using a residential investment loan.
The asset was to be purchased through a Special Purpose Vehicle (SPV), which was owned by the client and his son.
The challenge
The property was in a desirable location with high levels of tenant demand. However, it included three units of under 30m2 in size, which would not be eligible for a traditional mortgage. Therefore, Investec was required to assess the holistic value of the building to provide an appropriate loan amount.
In addition, the units were not currently generating rental income. To ensure repayments could be serviced, we evaluated the client’s overall income and portfolio.
The solution
We were pleased to help this entrepreneur and his family seize this opportunity and complete the deal within ten weeks.
Investec provided a 70% LTV residential investment loan of approximately £3m to the Special Purpose Vehicle. The loan was offered on an interest-only basis for five years.
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Important information
Your property may be repossessed if you do not keep up repayments on your mortgage. Investec residential mortgages are only available for residential properties in England or Wales and are primarily available to UK residents and subject to eligibility. This is a case study based on the services we provide. Some details may have been changed for client confidentiality.
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