West One Loans has completed a £2.9m, complex buy-to-let loan with a landlord who already had outstanding mortgage balances of £7.3m.
The specialist lender provided finance to purchase five standard residential properties and three houses in multiple occupancy (HMO) properties.
The eight properties were owned in the borrower’s personal name and the requirement was to transfer them into the limited company that had been formed to hold the portfolio. There were two other lenders also supporting the clients move from personal to limited company structure, benefitting from the portfolio incorporation relief rules.
Andrew Ferguson, managing director for the buy-to-let division at West One, said: “When it comes to financing large complex buy-to-let portfolios, selecting the right lender is crucial.
“For complex cases you need a safe pair of hands and at West One our individual approach to underwriting means that we review each case on its own merits, ensuring we support clients to secure the purchase or remortgage that they require in a smooth and timely fashion.”
Manual underwriting enabled West One to overcome some adverse credit registered on the borrower. During the application the client was able to get the adverse removed.
Due to the personal tax liability associated with the portfolio, it made financial sense to move the properties into a limited company structure for more efficient tax planning. The client had taken appropriate advice from professionals and was able to utilise the incorporation relief process, allowing the transfer to take place without the need to pay stamp duty or Capital Gains Tax on the transfer.