Marlena’s story - how Foundation helped with a complex case

Marlena, an experienced landlord with a diverse property portfolio, is always on the lookout for ways to boost her returns. One of her best-performing investments is a 19-bed HMO split across four flats, sitting above a pizzeria in the Midlands.

The property is owned through her limited company, which is part of a larger group structure. The holding company also owns 100% of this, which can make borrowing tricky, but not with us.

Marlena wanted to refinance the existing loan on this property and release some extra funds to help grow her portfolio further. So, she needed a lender who understood more complex setups and semi-commercial properties like this one. She needed a lender like Foundation.

At Foundation, we’re happy to work with limited companies with up to four directors and unlimited shareholders, ideal for landlords with group structures like Marlena’s. Plus, we allow intercompany loans to be used as deposits for future purchases, offering real flexibility for portfolio landlords planning their next big move.

What makes this property interesting is that it’s a semi-commercial building, with an HMO upstairs and a pizzeria on the ground floor. Some lenders might struggle with mixed-use buildings like this, or be very strict about what type of business can be downstairs. But not us.

At Foundation, we consider properties with commercial units like restaurants, hairdressers, shops and more. We use both the residential rental income from the HMO and the commercial rent from the business below when working out affordability.

There’s just one key thing we’re on the lookout for with semi-commercial cases: the rental income and the property’s value from the residential part must make up at least 60% of the total. In Marlena’s case, it did, so we were able to help.

Thanks to this, Marlena was able to refinance her existing loan and raise extra funds to invest in new properties, all while keeping her group structure and complex setup in place.

If you’ve got a case like Marlena’s, or something a little different, get in touch with your Foundation regional area manager today. We’re always happy to help.

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