Grade II listed multi-unit property £1 million remortgage completed in four weeks

Trinity Financial arranged a specialist limited company buy-to-let remortgage for clients who owned an unusual Grade II listed property consisting of three separate houses on one title.

The property had been purchased using bridging finance, so the clients needed to replace the short-term loan relatively quickly. However, its unusual layout, letting arrangements and listed status meant that only a limited number of mortgage specialist lenders were willing to consider the application.

The clients’ circumstances

The husband was a self-employed entrepreneur, while his wife worked in banking. They owned the investment property through a limited company and wanted to remortgage it onto a longer-term interest-only mortgage.

The main house was let to a corporation for use as employee accommodation. The two smaller houses were each rented under individual assured shorthold tenancy agreements.

Why was the mortgage complicated?

Several aspects of the case restricted the choice of lenders:

• Three separate houses were held on one legal title
• The main property was subject to a corporate tenancy
• The property was owned through a limited company
• The building was Grade II listed
• The mortgage needed to repay an existing bridging loan
• The property was difficult to value accurately because of its unusual configuration

Many lenders will not accept corporate lets unless the property is being used to house the corporation’s employees. Even where this condition is met, considerably fewer lenders will accept three residential properties on one title.

The clients also wanted to avoid the high arrangement fees often charged on specialist commercial and complex buy-to-let mortgages.

The mortgage solution

After approaching lenders experienced in unusual buy-to-let properties, Trinity Financial secured an interest-only mortgage with specialist lender.

The mortgage was arranged at 75% loan-to-value with a rate of below 5.7%. This was a competitive rate given the specialist nature of the property and the limited company ownership structure.

Although the mortgage valuation was lower than the clients had expected, the property was still valued above its original purchase price and provided sufficient security for the required 75% loan-to-value mortgage.

Mortgage offer issued within four weeks

Despite the complexity of the application and the valuation challenges, the formal mortgage offer was issued within four weeks.

This allowed the clients to replace their bridging finance with a longer-term mortgage and retain the property as a limited company investment.

Is it harder to get a mortgage on a listed property?

Not always. Some lenders are fine with listed properties as long as the house is in good condition and the lender's valuer likes it.

Listed homes often require specialist materials and approved building techniques, and owners may need listed building consent before carrying out certain works. These restrictions can make repairs more expensive and reduce the number of contractors able to complete them.

The mortgage lender will usually rely heavily on the valuer’s comments. The valuer may consider the property’s condition, marketability, construction type, repair obligations and whether any unauthorised alterations have been made. Lenders may request a specialist building survey, evidence of listed building consent, planning documents or confirmation that previous works were completed correctly. 

Many mainstream banks and building societies will still lend on Grade II listed properties, particularly when the home is in good condition and has a strong resale market. Grade I and Grade II* properties can be more difficult because they are considered more historically important and may have stricter restrictions. 

How Trinity Financial helped

The clients were referred to Trinity Financial because they needed a broker with experience arranging mortgages on unusual properties.

Cases involving multiple houses on one title, corporate tenancies, listed buildings and limited company ownership often fall outside standard buy-to-let lending criteria. 

Contact Trinity Financial for expert advice if you need to remortgage a multi-unit property, a Grade II listed investment property or a property with a corporate tenancy.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate older property mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

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