Day 1 remo at 80% of Market Value
Posted on 5th June 2023 at 17:18
Is there a lender who allows you to buy a property for 80% of it's value, and then remortgage based on the market value, thereby taking back your initial investment, and leaving 20% equity on the property? (rhetorical question!) ... Yes., there is such a product on the market .....
All that is required to prove ownership and to refinance at 80% LTV, is that the applicant has the signed TR1 form on file.
The lender is happy if the client's purchased the property for cash and are looking to repay themselves and further capital raise for any legal purpose - other than propping up a failing business and repaying gambling debts.
If someone has purchased below market value and it was not a distressed sale, the lender does not have any concerns in using the OMV as they will of course instruct a valuation to confirm the figures. They may just ask for an explanation as part of underwriting.
In summary; they do need the applicant to have the TR1 form on application, but it will be part of the conditions listed in the Offer. They do not instruct the valuation until the case has been fully underwritten, so the only fee payable by the applicant is the £149 application fee until the case has been reviewed.
Other initial minimum criteria for any applicant is that they have at least 1 BTL for 1 year for loans greater than £100,000 and with values greater than £125,000
For the professional property investor and BTL'er, this is a game changer!.
To enquire, complete the form below.
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