Limited company application for the purchase of a BTL in Canary Wharf completed with the support of Landbay.

The clients were first-time landlords and had purchased the property off-plan with a completion date set for March 2020.

This had a restricted lender panel as the property was a new build in a block with 42 stories.  The purchase price was £960,000 and a 20% deposit had been paid.

Due to the rental income and restrictions applied following the coronavirus outbreak, the maximum loan available was £720,000 and the applicants had to increase their contribution.  Following the valuation, the rental income was reduced from an anticipated £3500 to £2850 pcm. The lender then applied an additional restriction as they were first-time landlords and increased the stress test to 135% at pay rate as opposed to 125% which would have made the purchase impossible.

The applicant has managed her father’s properties for some time and, as a compromise, the lender accepted confirmation that she had experience from this as an exception and reverted back to the originally agreed sum.

Additional requirements:

• EWS1 form as the property is a block of flats (new legislation following the Grenfell disaster)
• Reinspection to ensure all works were complete prior to completion

There were delays due to the lockdown and the building wasn’t completed until October. The original enquiry came in in December 2019.