Buy to Let & Commercial Investment Mortgages

Buy To Let Mortgages are designed either for the purchase or refinance of residential investment properties either as a sole trader, a partnership, a limited liability partnership, limited company or other legal entity. The rationale for a purchaser is commonly the generation of rental and potential future capital appreciation. This is strictly not for properties to be owner occupied.

CFS can assist with funding buy to let properties using our considerable experience with property lending to assist you the client to achieve your property strategy.

Whether a client runs a property portfolio of 3 or 50+ residential or mixed use (e.g. freehold incorporating separate residential flat/flats and commercial premises – also termed semi-commercial) properties there is a need to take a measured approach in determining which lenders to use to either grow or maintain the portfolio.

The type of legal entity used, and the asset type will determine the options available as the lending is provided by the more specialist lenders with whom CFS work on a daily basis.

Buy To Let & Commercial Investment Mortgages can be used to:

• Refinance existing properties or portfolios to release equity for new purchases or for general business purposes.

• Buy new properties whether one or multiple units under one freehold.

• Finance a freehold with multiple residential flats, commercial properties or a mixture of both within one loan as commercial lenders are comfortable with such structures. This option removes the need to separate the freehold from the various flats by creating leaseholds in a separate company (they cannot be held in the same company as the freehold) to satisfy the general buy to let lender vanilla requirements.

• Allow for interest only funding providing the loan can be adequately serviced and there is a clear future repayment strategy. This removes the need to make loan capital repayments so improves cashflow and potentially increases the level of borrowing available to the client. This approach should be carefully considered as one of many options as an interest only loan is likely to prove more expensive over time than a simple repayment mortgage.

• Provide a range of repayment options for those who are not looking to grow their portfolios or wish to see the loan/loans reduced progressively.

• Be used with residential properties (including holiday lets, Houses of Multiple Occupancy and student lets) offices, retail shops, shopping parades, warehouses (sole or multiple), pubs, restaurants, educational premises and other property types.

As with any lending it is important to ensure you do not enter into a contract with a lender unless you are certain that the loan repayments/interest can be easily met as the asset is always at risk until the loan is repaid.