Specialist lender Foundation’s Property Plus proposition has helped a broker secure a buy-to-let mortgage for a client purchasing a high-yield Glasgow flat above commercial premises, turning a declined application into a completed purchase.
The one-bedroom flat, valued at £110,000, sits in a sought-after area of Glasgow and generates rental income of £725 a month, equating to a yield of 7.9%. Despite the strong return, the property’s location above a pub created problems at valuation stage, since it fell outside the criteria most high street lenders apply to properties near commercial premises.
Foundation revisited the case after enhancing its Property Plus proposition, developed with valuation partners Connells and e.surv. The updated approach lets valuers take a broader view of specialist properties, recognising that assets which sit outside conventional lending norms can still offer landlords a strong and in-demand investment.
Once the case moved onto the Property Plus product, it progressed without further disruption. Connells valued the property at the agreed purchase price, allowing the landlord, an experienced portfolio investor, to complete the purchase.
Foundation said the case reflects its wider commitment to adapting its buy-to-let mortgage propositions in response to broker feedback, so that more applications can proceed where the underlying investment case is strong, even if a property falls outside traditional lending criteria. The lender added that the deal supports its broader aim of helping brokers and landlords access funding for suitable specialist properties.
“Foundation was the only lender that met all the requirements, so when the case was initially declined on a standard product because the property was above commercial premises, I panicked as I had nowhere else to place it,” said Reagan Hamilton, mortgage and protection consultant at Clear Vision Mortgages.
“Thankfully, the underwriter suggested switching to Foundation’s Property Plus range, and the application was accepted without any issues. The deal then went through smoothly.”
“Thanks to our enhancements to our Property Plus proposition, we were able to revisit this case and help the broker get it over the line for her client who was struggling to find an alternative home for it,” said Fiona Roberson, regional account manager at Foundation.
Ben Leroy, client services director at Connells, said the deal reflected a broader approach to specialist assets.
“Working closely with Foundation, and seeking to support them achieving their lending goals, we were able to get this case over the line by taking a holistic and robust approach to properties that remain in strong demand among landlords,” he said.
“I believe it was Foundation’s Property Plus proposition that ultimately made the difference, which enabled them to say yes where other lenders might have declined.”
Nathan Goodridge, head of sales at Foundation, said the case illustrated the benefits of a specialist approach to property assessment.
“This case demonstrates the value of taking a specialist view on property,” he said. “Assets like this can deliver higher yields than standard buy-to-let properties, making them an attractive option for landlords looking to strengthen portfolio performance when assessed appropriately.”
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