Buy-to-let lender Landbay has completed a pair of new build deals quickly with packager 3mc on two flats in Stratford, East London.
Landbay received two buy-to-let applications from the same borrower on the 16 January. The cases were offered on 24 January, the legals were instructed on 26 January and it was completed on the 9 February.
John Goodall, chief executive of Landbay, said: “We completed our part of the cases quicker for two buy-to-lets on new build faster than many bridgers would do, who talk about speed and charge considerably more.
“That’s what we always do but often the borrowers, valuers or legals can take longer.
“3mc is a very efficient packager/distributor that provides all the information upfront which makes it a lot easier and more efficient. I know they also pride themselves on having good introducing brokers, as they need to do their part too.”
The properties were valued at £360,000 and £375,000 and were purchased off plan. The loan-to-values were 65%.
The client was an experienced portfolio landlord who already had a number of other properties.
Goodall said that not enough lenders lend on new builds and this needs to change.
He claimed that Landbay looks at the valuation for new builds in more detail than most, asking more questions to mitigate risks.
Goodall added: “If the government gets the housing policy right and builds more homes, there will be many more new builds and lenders need to start lending on them.
“These are new houses that are made of modern materials and won’t wear or tear yet, and are potentially more energy efficient.
“If in the right location and done well they are attractive properties. New build is just a minority of what we do but it’s a good, growing market.”