Portfolio landlord bags mother of all remortgages – £11m for 63 properties

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Shawbrook Bank has just arranged the mother of all buy-to-let mortgages for a portfolio landlord needing £11 million to refinance a spending spree in the North West.

The landlord wanted to release capital from 63 houses and flats and approached Empire Finance following the recent base rate rises and limited lending appetite from their previous high street lender.

Shawbrook agreed to an £8.5 million five-year fixed interest-only mortgage geared across the properties with an LTV of 75% and a £15 million lending facility – arranged with a standard personal guarantee of 25% and no debenture requirement.

Rate rises

The deal frees up equity and means the landlord can buy further properties down the line while protecting them from future rate rises over the next five years.

There are significant opportunities for ambitious property investors, says Matthew Taylor, national relationship manager at Shawbrook Bank, who adds that the case demonstrates its ability to deal with complex cases, the strength of the team’s relationship with Empire Finance and its appetite to lend.

“It’s important that brokers are able to build relationships with our team and feel able to speak directly to the decision makers on their case. Being able to do so gave both the broker and the landlord confidence in our ability to get this deal across the table,” says Taylor.

Gareth Broome at Empire Finance adds: “Our client’s needs were complex and it was important that we found the appropriate lending partner that would be able to accommodate and flex its offering.

“Shawbrook delivered on their promise and together we were delighted to complete this facility which has provided our client with sufficient capital to purchase £10m of additional properties.”

Read more: Mortgage FAQs for landlords answered.

View Full Article: Portfolio landlord bags mother of all remortgages – £11m for 63 properties

Warning of a ‘Tsunami of students’ struggling to find accommodation

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UK rental guarantor service Housing Hand has warned that A level results day is likely to trigger a tsunami of students struggling to find accommodation for their university places.

The warning comes in light of unparalleled demand for university accommodation

View Full Article: Warning of a ‘Tsunami of students’ struggling to find accommodation

Letting agent who stole £80,000 from dozens of landlords admits fraud

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A rogue letting agent who did a runner, leaving landlords more than £80,000 out of pocket, has admitted two counts of fraud.

Scores of tenants and landlords discovered Frank Smart (main pictured), the owner of Smart Residential Letting Agents in Newmarket, had kept their rent and deposits after the firm closed in July 2018, and they were unable to contact him, Ipswich Crown Court heard.

So numerous were his victims that a Facebook page has been set up where landlords who have lost money via his Smart’s activities can co-ordinate attempts to recoup their cash.

One landlord, Teresa Wright, revealed that “my rents are my pension [and] I had to find my tenants’ deposits because he also stole those.

“Some tenants had the stress of threatened eviction because their landlords thought they were not paying their rent. This man caused more than just financial loss and will probably get at worst a short custodial sentence in a soft prison and that will be halved”.

Witnesses

Local and national trading standards officers spoke to more than 30 witnesses during the investigation and found that numerous landlords hadn’t received rental income. They were forced to refund tenancy deposits out of their own pocket, resulting in individual losses ranging from £700 to over £8,000.

A spokesman for Suffolk Trading Standards says many of these landlords entrusted Smart Residential with their rental properties, and to hold tenancy deposits on their behalf.

He adds: “By law, these deposits should have been placed into a deposit protection scheme – offering protection to tenants in the event of a landlord or letting agency facing financial difficulties. We believe that Mr Smart failed to use this scheme, resulting in substantial losses for his victims.”

Fraudulent

Councillor Andrew Reid (pictured), Suffolk County Council’s cabinet member for public health and public protection, believes the prosecution sends a very clear message to business owners like Smart.

“Fraudulent trading will not be tolerated in Suffolk,” he says. “His actions led to countless landlords being significantly out of pocket, causing immeasurable personal and financial stress – and highlighting the importance of ensuring that any rental deposit is placed into a deposit protection scheme.”

Smart, of Dowding Avenue, Cambridge, will be sentenced at a later date.

View Full Article: Letting agent who stole £80,000 from dozens of landlords admits fraud

What is a guarantor’s suitability and need?

admin    Uncategorized     agents

Hello everyone, I am being told, I think, some unusual things about the need for guarantors by a large national agency.

First of all they said there was no need for a guarantor if the tenant met the 2.5 times criteria and refs and the credit history were ok.

View Full Article: What is a guarantor’s suitability and need?