A 72 year old landlord has just remortgaged a semi-commercial property in London, with the lender agreeing even though the landlord will be 97 at the end of the repayment term.
The landlord was looking to remortgage a £1.2m semi-commercial property near Kentish Town tube and overground station after a refurbishment, and his existing lender had turned him down as he would be 97 at the end of the 25-year term.
But a spokesperson for Redwood Mortgages says: “The introduction came from a broker who I have known for many years. This was the first deal we were able to complete with them.
“They approached me as they were aware the landlord was in his seventies and didn’t know if we would be able to assist, although they had said his son was more involved in the business and for succession planning would becoming a director and shareholder of the limited company.”
Redwood’s usual maximum borrowing age at end of term is 75, but that can be extended if circumstances merit. In this case, the landlord’s son became a shareholder and director of the landlord company.
A loan of £561,000 (LTV 43 per cent) on a five-year fixed deal over 25 years on capital and interest repayment terms was made available, allowing the development finance to be repaid, while also letting the landlord progress with his plan of making his son a director.
“We were delighted we were able to support this request, providing a longer-term finance option which has saved the family money as we were able to provide a better rate than the existing lender” says the spokesperson.
This article is taken from Landlord Today