Buy to let mortgage for 72-year-old client

THE SCENARIO

My client was a retired lady in her seventies, who approached Enness to help with an unusual case. She hoped to separate land to form two titles; one title would be her main residential property, and one would be a buy to let. The property to be portioned as the buy to let was worth £750,000 and would be used as security for the loan

She had spoken to several other brokers before us, but had not felt confident they had provided the best solution for her situation. She had been advised to take out bridging finance, once her current mortgage had expired.

There were a number of issues which made this case difficult. My client’s age was a barrier, as many lenders will apply an upper age limit when assessing suitability for a loan. As she was retired, I knew many lenders would also be dubious about how she would pay her mortgage if she experienced rental voids in the buy to let property. The location of the land was also a potential issue.

OUR SOLUTION

I consulted carefully with my client to gain a thorough understanding of her background wealth and income. Using this information, I was able to highlight to the lender that my client would not be dependent on the rental income and would be able to cover rental voids.

Knowing many mainstream lenders would have reservations about a case such as this, I approached a niche lender who I knew from experience might be happy to lend to my client. They were happy to proceed on the basis I evidenced my client’s disposable income, as well as her strong credit profile and background assets.

I arranged a 10-year loan at a rate of 3.5% variable rate, highlighting my client’s background assets as proof she would be able to repay the loan.

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