Case Study: North London Buy to Let Mortgage for a Multi-Unit Property | Mortgage Market Blog | Fox Davidson
Fox Davidson
Mortgage Resource
2 months ago
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Client Background

Our client, operating through her limited company, sought to expand her property portfolio by acquiring a multi-unit block in North London. She identified a property at auction — a block containing four self-contained flats, ideal for buy-to-let investment.

Challenge

The client purchased the property using bridging finance, a common strategy for auction purchases where traditional mortgage timelines might not align. However, this left her needing an effective exit strategy for the bridging loan.

Solution Provided by Fox Davidson

Recognising the unique aspects of the property and the client’s investment strategy, Fox Davidson proposed:

  • Title Split Upon Completion: The strategy involved splitting the freehold title into four separate leasehold titles upon completion of the purchase. This approach not only simplifies future management but also increases the properties’ marketability and value.
  • Day 1 Remortgage: By arranging for the title split, we facilitated a Day 1 remortgage. This meant that the client could remortgage the property immediately after the purchase, using the newly created leasehold titles.
  • Multi-Property Application: All four flats were included in a single multi-property mortgage application, streamlining the process and potentially securing more favourable terms than individual mortgages would.

Outcome

The client successfully remortgaged the four flats, achieving:

  • Cost Efficiency: The single application for multiple properties reduced legal and mortgage arrangement fees.
  • Time Efficiency: The process was expedited due to the preparation for the title split, allowing the client to exit the bridging loan promptly.
  • Investment Flexibility: With each flat now having its own title, the client has greater flexibility in managing or selling individual units if needed.

Key Takeaways for North London Buy to Let Mortgage

  • Innovative Financing: Utilising bridging finance for auction purchases can be highly effective if paired with a strategic exit plan.
  • Legal Preparation: Early involvement in the title splitting process ensures that all legal aspects are aligned with financial strategies.
  • Market Knowledge: Understanding the nuances of the North London property market helped tailor the solution to maximise investment potential.

Through this case study, Fox Davidson demonstrated not only our expertise in securing North London buy to let mortgages but also our ability to think creatively about property investment strategies.

To discuss buy-to-let mortgage with a London mortgage broker please do get in touch.