I already own 3 out 5 flats in a block and want to buy a 4th. If I borrow the cash, can I remortgage later to repay the loan?

Posted on 28 October 2014 by Gareth


I own 3 flats with mortgages in a development of 5 flats. I live in 1 of the 3, and the other 2 are BTL flats in my name. I am looking to buy a fourth flat, but need to move very quickly due to the circumstances of the vendor and a mortgage application will slow this down. I have 40% of the purchase price in savings, and can borrow the remaining 60% from my parents. I will need to repay my parents within a year or so.  Will I be able to easily raise a mortgage on this 4th flat to repay the loan to my parents? I would also like to buy this via a newly formed limited company, sole purpose to hold this flat and rent it to tenants. WIll this complicate the raising of a subsequent mortgage?

Gareth,

The biggest issue that most lenders will have is the overall exposure in the block, though as you are looking to do this in a Limited Company name, we wlill be looking predominantly at commercial lenders. Also another factor to consider is that some lender would class repaying the loan from your parents as debt consolidation, however the loan to value of 60% will help to mitigate this.

Whilst this won't necessarily be the easiest case to place, I would like to think that we should be able to find a lender to assist you.

If you'd like to discuss your enquiry in more detail, then please contact one of our consultants on 0344 346 3672 and they'll be able to give you a better idea of how we can help.

Regards,

Alistair

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