Call us on 0344 346 3672
or arrange a callback

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,

Simon

More than mortgages, talk to me about:
Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance
General Insurance | Valuations | Conveyancing | Wills | Home finders

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.


Legal

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.

John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.