Buy to let and commercial mortgage specialist TBMC has launched a semi-exclusive bridge-to-let scheme with Tiuta.
The deal comprises a six-month bridging loan up to 75 percent of the open market value at 1.65 percent per month, while works are carried out, followed by a two-year 6.99 percent fixed buy to let mortgage. However the offer is only available via a limited number of distributors.
Andy Young, Chief Executive Officer at TBMC, said: “We are pleased to offer this niche product which will be useful for professional landlords looking to purchase bargain properties in need of some refurbishment.
“For the right investor, this product enables portfolio development and leaves little capital tied up at the end of the term.”
Guy Garrard, Head of Business Development at Tiuta, added: “In today's lending market, many landlords are experiencing difficulty arranging buy to let finance for properties that need upgrading before letting them out.
“They have access to bridging finance for refurbishment but no guaranteed exit route. Tiuta's bridge-to-let scheme caters specifically for this type of property investment, giving landlords the security of a buy-to-let mortgage after completion of the works.”
• A landlord who failed to obtain House in Multiple Occupation (HMO) Licences from Birmingham City Council has been prosecuted and fined.
David Delaney Hall, of 10 Woodbourne Road, Edgbaston, was found guilty in Birmingham Magistrates Court on 29 July 2010 for failing to apply for HMO Licences for six of his rented properties, which were let to students.
He was fined £3,000 per property, plus prosecution costs of £2,072, taking the total cost to £20,072.
Delaney Hall owns a total of 21 student properties in the Selly Oak area, some of which he owns outright and the others are owned by Abrex Ltd and SJA Properties Ltd, companies on which he serves as a director alongside his wife.
Since April 2006, there has been a requirement to licence houses of three storeys or more, occupied by five or more tenants, who have no family connection and share amenities such as a bathroom or kitchen.
The Council had written to Delaney Hall and made visits to his property on a number of occasions, advising him to licence his properties prior to starting legal proceedings. Despite considerable effort by the Licensing team he ignored advice to apply for the licences.
Cabinet Member for Housing, Cllr John Lines said: “I am determined to ensure all Birmingham tenants, including students who often have to share accommodation with a number of other individuals, live in safe housing and my officers gave the landlord every opportunity to apply for a licence.
“The council has now licensed over 1,400 properties and I recognise there are many good landlords in Birmingham but there is no room for landlords who fail to comply with the law and put their tenants’ lives at risk.”
Following the instigation of the legal proceedings, Mr Hall submitted applications for HMO Licences to the council.
