A Seamless Transition from Residential Purchase to SPV Buy-to-Let Mortgage

18th December 2023

Key Figures:

• Client: British National & Resident

Property Type 1: Residential Property

• Property Value: £277,500
• Loan amount: £230,000
• LTV: 83%
• Interest rate: A Fixed interest rate for 2 years
• Term: 32 years

Property Type 2: SPV Buy-To-Let

• Property Value: £210,000
• Loan amount: £157,500
• LTV: 75%
• Interest rate: A Fixed interest rate for 2 years
• Term: 30 years

The client, approached our team at WIS Contractor Mortgages LTD with a unique and multifaceted financial requirement. He was not only seeking assistance with a residential purchase but also needed support for the establishment of a Special Purpose Vehicle (SPV) and a subsequent buy-to-let mortgage. This case study details how we successfully guided the client through these complex financial transactions, showcasing our commitment to providing comprehensive, tailored solutions.

The Client was a professional with a keen interest in property investment. He approached us with a vision of purchasing a new residential property for him while simultaneously transferring his existing property into an SPV for buy-to-let purposes. This ambitious project required the coordination of a diverse set of financial services, from residential mortgage guidance to setting up a new SPV company through our in-house accountancy team.

In this case the client presented several challenges, including:

• Simultaneous Transactions: Coordinating the residential purchase and the SPV setup required precise timing and execution to ensure a smooth transition.
• SPV Establishment: Establishing a Special Purpose Vehicle involves legal and accounting complexities that needed to be managed efficiently.
• Mortgage Financial Planning: The client sought our assistance in optimizing his financial position, ensuring that both properties would be financially viable.

This is how we navigated to overcome each obstacle:

Our dedicated team worked closely with the client to develop a strategic plan that addressed his specific needs:

• Residential Purchase: We analyzed the client's financial situation and advised on the most suitable residential mortgage options for his new property. Our expert mortgage advisors guided him through the application process and secured a competitive mortgage rate.
• SPV Setup: Our in-house accountancy team facilitated the establishment of an SPV company tailored to the client's requirements. We ensured that all legal and accounting aspects were handled meticulously, providing a hassle-free experience for our client.
• • Buy-to-Let Mortgage: With the SPV company in place, our mortgage experts assisted [Client's Name] in securing a buy-to-let mortgage for the property now owned by the SPV. This ensured he could maximize his rental income and make the most of his investment in a tax efficient manner. Tax efficiency was mainly driven by the SPV setup.

Through our integrated approach, we achieved the following results:

• A successful residential purchase, providing him with a new home perfectly aligned with his needs.
• A fully operational SPV company, enabling him to efficiently manage his existing property as a buy-to-let investment.
• Optimal mortgage financial planning and mortgage solutions, maximizing his investment returns.
• A successful individual managed to achieve the numbers and our broker secured a very competitive UK mortgage with a high-street bank.

Please contact us to learn more about how the team can support you with securing a UK mortgage.

This case study is in respect of specific client needs and objectives. Your needs and objectives may differ therefore the advice and recommendations may also be different.

As a mortgage is secured against your home/property, it may be repossessed if you do not keep up with the mortgage repayments.

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