Limited Company Mortgage for Multi-Unit Freehold Block

Deal Structure

• 75% Loan to Value (LTV)
• £350,000 loan facility
• Interest rate: 3.99% fixed for 5 years
• Interest-only payments
• 10-year term
• Flexible overpayment options

Deal Summary

Our client wanted to purchase a freehold block containing four flats in a sought-after location.

The client planned to complete the purchase through a Limited Company structure. However, his usual broker was unable to assist because the proposed ownership structure fell outside their lending options.

We regularly work with lenders who consider limited company property purchases. We therefore approached several lenders to obtain indicative terms for the transaction.

This allowed us to present the client with a range of options. He could then compare the available rates, terms and flexibility before choosing the most suitable solution.

The client ultimately selected a 75% Loan to Value mortgage with a £350,000 loan facility.

The mortgage offered a 3.99% fixed interest rate for five years and an interest-only structure over a 10-year term.

The facility also provided flexibility for overpayments. This gave the client the option to reduce the outstanding balance if they chose to do so during the term.

The Outcome

By accessing lenders with an appetite for limited company investment property, we helped our client secure funding for the purchase of the four-flat freehold block.

The 75% LTV facility provided the leverage the client wanted, while the five-year fixed rate gave them greater certainty over their borrowing costs.

This case demonstrates how using a Limited Company structure does not necessarily prevent you from securing finance for a multi-unit property. The key is finding lenders whose criteria match the proposed ownership structure and property type.

If you are looking for limited company finance for a multi-unit property, Positive Commercial Finance can search the market and compare suitable lending options based on your investment strategy and requirements.