Reaching their sixties with some savings in the bank, our clients wanted to buy their first investment property. And not just any investment property: they wanted to buy a private dwelling by the sea and turn it into a holiday let.
They approached us having found that lenders wanted them to have prior lettings experience and had even suggested that they earn their stripes with a standard Buy to Let first. Banks wanted them to have a certain level of background income and they required evidence of existing holiday let performance from their chosen property. Although our clients had none of this, we felt that they had a strong enough case to present to the right lender, which would use their capital wisely and set them up with an additional plan for their retirement.
With our knowledge of the specialist lending market, we were able to introduce our clients to a small, regional building society who were from outside the area but had expertise in holiday let mortgages. They requested a detailed rental valuation from a nearby Holiday Let Agent and averaged the high, mid and low seasons to gain comfort with the rental income and they looked on local property sites to get accustomed with the area. The underwriter agreed that the purchase would ultimately improve our clients’ position and offered them a long-term holiday let mortgage.
If you or your clients have borrowing needs that are outside of the box, feel free to get in touch.