Coreco Commercial was approached by a client who has a large existing property portfolio centralised in London and the South East, but were keen to add to it. They decided to purchase a property in need of minor refurbishment, which could be added to their existing rental portfolio.


The minor refurbishment required on the property was predominantly cosmetic and therefore it had been arranged that works were to be completed between exchange and completion.

However, the clients existing portfolio failed to meet most lenders portfolio affordability assessments. This was because the properties were located in areas of high capital value, but low rental yield.


Tom Matthews, an expert specialist adviser here at Coreco Commercial, knew that a case of this kind was going to require some in-depth product knowledge in order to present the case to a suitable lender. With extensive industry experience, he was able to explain the situation to a lender who accepted an exception due to the modest overall LTV. They settled on a Penalty Free Variable Buy-To-Let facility with Foundation Homeloans,  who in addition accepted No Search Indemnity Insurance to aide sale completion. This avoided a long delay due to the length of time local authority searches were taking in the area – as a result of this unique scenario, the lender subsequently chose to make this a universal policy decision.