Pauzible is a financing product for buy-to-let (BTL) landlords that unlocks the wealth trapped in the equity of their BTL property.
Pauzible pays the landlord a part of the BTL property value today and participates in its future upside as well as downside.
This financing is in addition to the existing BTL mortgage on the property.
Pauzible provides gross financing of up to 1/10th of the value of each of your BTL properties, subject to a maximum amount of £150,000 per property.
Example 1:
A BTL landlord has a property with a value £1 million Pauzible will unlock wealth and provide a gross financing amount of £100,000
Example 2:
A landlord has a portfolio with three BTL properties
Property
Value
Pauzible Unlock
Property 1:
£250,000
£25,000
Property 2:
£400,000
£40,000
Property 3:
£1,100,000
£110,000
Total
£1,650,000
£165,000
In Example 2 above, the landlord would be able to unlock a total gross financing amount of £165,000.
The actual cash received would be after deducting the initial costs.
The maximum amount I can get on each property is 1/10th of the value of the property, subject to a maximum gross financing amount of £150,000 per property and the combined loan-to-value ratio not exceeding 85%.
You make a small monthly payment and a final repayment at the end of 5 yrs.
Landlords pay a monthly premium, typically 1/10th of the expected monthly rent assuming that they have unlocked 1/10th of the value of the property
Example: If your expected monthly rent is £3,000, you pay £300 / month You pay the premium whether the property is rented out or not.
The monthly premium is adjusted annually in line with inflation by (RPI) plus 1%.
If the landlord receives 10% of the value of the property as the gross financing amount, the final repayment percentage at the end of 5 years will be
14% of the then value of the property
Examples
If a Landlord receives £100,000 (10% of the value of a property worth £1 million), the final repayment amount will be
£140,000 (14% of £1million, if the value of property remains the same)
or
£154,000 at a property value of £1.1MN (14% x £1.1MN)
or
£112,000 at a property value of £800,000 (14% c £800,000)
after 5 years.
Yes, the repayment amount is dependent on the market value of the property.
Pauzible may even lose its entire investment if the value of property falls below its mortgage value.
For instance, in the event that the BTL property is sold, Pauzible only receives funds from the proceeds of the sale. If the amount received is less than what is owed to the first mortgage lender, the landlord is not expected to make whole Pauzible’s loss.
This is unlike most other property financing, where borrowers are expected to repay the principal irrespective of the proceeds from the sale of the property.
Yes, the primary purpose of Pauzible financing is to unlock the equity in your business BTL property and it is in addition to your long term mortgage.
Example:
Property value of
£1,000,000
Long term mortgage
£700,000,
Landlord’s Trapped Equity
£300,000
Pauzible can unlock
£100,000 (1/3rd of the £300,000 equity!)
This is over and above the £700,000 mortgage
In order for you to be able to receive a gross financing amount of 1/10th of the value of the property, the first mortgage can be up to 75% of the value of the property. If your loan-to-value (LTV) ratio is between 75% and 85%, we may still be able to help you unlock some equity in your buy-to-let (BTL) property. Contact us to find out how much you could potentially access.
Yes, but a first mortgage is likely to be a more suitable financing option than Pauzible in this situation.
You can potentially receive the funds in 3 – 4 weeks from the time of application. The timeline is substantially dependent on yourself, the surveyors appointed to value the property and your legal advisors.
At the end of 5 years or earlier if you so wish.
No. You can repay at any time.
However, if repayment occurs before the end of the third year, the property's repayment amount is calculated on a property value that is the higher of the a) initial market value and b) market value at the time of repayment.
Pauzible provides financing to owners of business buy-to-let (BTL) properties in England and Wales who reside in the UK.
Pauzible's financing is subject to its proprietary underwriting criteria.
No, as long as the financing is used for a business purpose, such as furthering the BTL business.
England and Wales.
Five years. Landlord can repay at the end of or any time during the 5-year period.
Residential buy-to-let properties in England and Wales including detached, semi-detached, terraced, bungalows, end of terrace properties, purpose built leasehold properties, converted flats and maisonettes.
To confirm eligibility for specific residential BTL property types, please contact Pauzible.
Commercial properties and owner-occupied residential properties are not eligible.
Yes, Pauzible's financing is available for HMO and MUFB properties, subject to its underwriting criteria.
Yes, Pauzible's financing is available for portfolios, subject to its underwriting criteria.
Pauzible considers several key factors during its underwriting process, including but not limited to:
Pauzible appoints an independent RICS surveyor to determine valuation. In certain cases, typically for lower-value properties, Pauzible may instead rely on an Automated Valuation Model (AVM) or a desktop valuation.
The buy-to-let landlord is responsible for the cost of valuation.
Arrangement fees:
Arrangement costs:
Additional costs include valuation fees, conveyancer searches, legal fees and disbursement costs. These costs will vary depending on the property type and specific circumstances.
Typically disbursed two weeks after the financing agreement has been executed.
The landlord can sell their property at any time during the 5-year financing period. The repayment to Pauzible will become due upon the sale.
If the landlord remortgages the property during the 5-year financing period and the new mortgage balance exceeds the prior outstanding mortgage balance, repayment to Pauzible will become due upon the remortgage.
The landlord has the right to buy out Pauzible at any time during the 5-year financing period.
No, the landlord is solely responsible for all expenses. Pauzible does not assume responsibility for any expenses.
Pauzible's business falls outside the scope of financial services regulation. Therefore, Pauzible does not need to be and is not authorised and regulated by the Financial Conduct Authority.
Our leadership team consists of passionate and seasoned professionals, who, on average, have over two decades of experience in mortgage and home ownership financing, building and using technology and delivering enhanced customer experience.
