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Capital raising on 24sqm studio flat for home improvements

Capital raising on 24sqm studio flat for home improvements

A full-time landlord approached his broker looking to raise finance on one of his unencumbered rental properties – a small studio flat in West London.

Having taken tax planning advice, he was looking to borrow personally rather than via a corporate vehicle.

The client planned to use the capital raised to carry out some minor improvements on the rental property, as well as on his main residence.

The broker had struggled to find a lender which would accept studio flats under 30 square metres, so approached Keystone to see if we could help.

Unlike most lenders, Keystone has no minimum size set for studio flats!

The case was accepted and went through without a hitch.

Here are the details of the deal:

Property value: £155,000

Loan amount: £50,000

LTV: 32%


Rate: 3.99% five year fixed rate

Term: 19 years interest only

Product: Classic Range

Borrower: individual

RTI: 145% @ 3.99%

Lender arrangement fee: 2% (£1,000)

Mortgage payment: £166 pcm

Rental income: £675 pcm

Gross yield: 5% pa

Broker proc fee: 0.60% (£300)



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