RESIDENTIAL BUY-TO-LET
FAST FACTS
OVER £500M READY TO LEND
FAST, FLEXIBLE FINANCE
DECISION IN PRINCIPLE WITHIN 1 Business Day
EX-PATS AND NON-UK NATIONALS
LOW FEES
LOW INTEREST RATES
Buy-to-Let has reached new heights of popularity but not all investors can access the mortgage market due to
missing some tick-list requirements of high street lenders. Assetz Capital takes a pragmatic approach to such funding,
recognising the strength of property security and its rental income as a critical part of the lending decision. We can
therefore consider lending on most types of UK BTL property to ex-pats, non-UK nationals, limited companies,
borrowers with some adverse credit history or other difficult situations.
PRODUCT BENEFITS
First and Second Charge Loans - Subject to rate adjustment on higher second charge LTVs
Limited Companies - Avoid the new BTL tax and no change in rates
Adverse Credit - Actively considered for appropriate LTVs
Ex-Pats and Non-UK Nationals - All considered as property is principal security
No 6 month rule - Borrower can receive a loan from us even if the vendor hasn’t owned the property
for 6 months
New Build - New build considered on the same rates as resale property
Flats above Commercial Property and flats over 10 storeys - All considered
Student and HMO property considered - Subject to valuers comments
* See Term Sheet for full details
INTRODUCER BENEFITS
Long Term Partnership & Support - A dedicated Relationship Director will work with you to
maximise your understanding of our great range of flexible finance products.
GREAT COLLATERAL - We can supply mailers, term sheets and case studies ready to send out to your
clients, co-branded if required.
REWARDING - We pay procuration fees to introducers where this does not create a conflict of interest
Wide range of Finance Solutions - One relationship, lots of products to suit different clients
020 7870 1023
[email protected]
For your business
[email protected]
For a client’s business (as an Introducer)
RESIDENTIAL BUY-TO-LET
TERMS SHEET
Indicative Terms
Correct as of 1st October 2016
Loan Type
1st Charge
2nd Charge/Equity Release
Minimum Loan Amount
£50,000
£50,000
Maximum Loan Amount
£500,000
£250,000
Maximum LTV
75% of MV
70% of MV
Minimum Loan Period
2 years
Maximum Loan Period
5 years
Facility Fee
3% (subject to a minimum fee of £2,000)
Rental Coverage
120%
120% (of total liability)
3% in year 1
2% in year 2
1% in years 3, 4 & 5
Redemption Charge
Each facility will be structured and priced on its own merits. We will consider terms outside the above LTV and maximum loan guidelines
where the circumstances of the loan warrant it.
Security
•
•
First charge security taken over acceptable properties in mainland UK
•
Deed of Priority required from existing lender on Second Charge loans
Where the borrower is a Limited Company, additional security will
be required in the form of a debenture over the company and a charge over
Security
the shares of the borrower
Personal Guarantees no longer required for Limited Company SPVs on Residential BTL properties.
First charge BTL loans available to Expat, foreign national and light adverse borrowers (subject to bespoke pricing)
Lending Terms
•
•
•
Interest charged daily
•
Broker fees will be added to the loan where the LTV allows and paid on completion. Responsibility for advising the Borrower on structure and
pricing will be solely that of the broker
•
•
Details of a viable exit will be required and in some cases we may request evidence of this
•
Where a property is being purchased at a discount, we will lend up to 90% of the discounted purchase price as long as this does not exceed the
maximum LTV for the scheme
•
•
Impaired credit will be considered on a case by case basis
•
•
•
Title Insurance will be a requirement on loans where they fit the relevant criteria and the fee for this will be included in the legal cost
Interest to be serviced from rental income mandated to Assetz Capital at 120% rental cover
Lending Terms
We will lend to experienced landlords or their Limited Company (including SPVs) and are able to consider overseas jurisdictions
owning UK properties, subject to suitable foreign legal opinions
Lending will be based on the market value (180 day), however, we reserve the right to lend based on the 90 day value should we deem it
necessary
The borrower is responsible for all professional fees and an undertaking/cover for legal and other professional costs for legal costs will be
required
Commercial and semi commercial properties considered
Please note: Assetz Capital does not provide FCA regulated mortgage contracts or regulated Consumer Credit loans
Assetz SME Capital Limited is a company registered in England and Wales with company number 08007287. Assetz SME Capital Ltd is authorised and regulated by the
Financial Conduct Authority. ‘Assetz Capital’ is a trading name of Assetz SME Capital Ltd. Assetz SME Capital is registered with the Office of the Information Commissioner
(Reg No. Z3338899) for data protection purposes. Copyright Assetz SME Capital Limited 2015. All rights reserved.
RESIDENTIAL BUY-TO-LET
CASE STUDY
Ged Hutton used the Assetz Capital peer-to-peer lending platform to raise a £95,445k loan from our investors to put
towards the purchase of a 3-bedroom buy-to-let property in Stockport.
An issue with the fact that the freehold had changed hands recently on the buy-to-let property prevented Ged from
getting a traditional mortgage with a major bank. He needed a quick turnaround as this was the last remaining plot
on the site. Working together with our sister company, AFI, Assetz Capital were able to understand the issue and
structure a loan that helped Ged meet his objectives.
IMPACT
One of our experienced Regional Relationship Directors was able to offer the customer a fast decision based on the
initial facts and made the application process as simple and quick as possible for Ged, tailoring the loan structure to
suit his needs.
Ged was able to purchase the modern 3-bedroom terraced property with the plan to rent it out to gain income and
plans to exit the loan by re-mortgaging the property.
GED HUTTON:
“I found it good working with Assetz Capital, they were very helpful and informative. They explained the Residential
Buy-to-Let deal to me thoroughly. They created a bespoke product that allowed me to purchase the new build quickly.
I have already recommended Assetz Capital to two friends. Peer-to-Peer lending is a great idea; it benefits property
investors such as myself as well as financial investors.”
DAVID PENSTON, MANAGING DIRECTOR, PROPERTY LOANS
“We are happy to have finalised the deal with Ged, helping him purchase the property and find time to re-mortgage.
Ged had a strong credit rating and a solid plan and wish him all the best for the future.”
020 7870 1023
[email protected]
For your business
[email protected]
For a client’s business (as an Introducer)