Director's Loan Repayment via Limited Company Remortgage
£680,000 · 25 years · 5.72% fixed 5 yrs. A landlord had funded the initial deposits for his limited company's three properties via director's loans from personal funds.
The Client
Landlord
The Challenge
A landlord had funded the initial deposits for his limited company's three properties via director's loans from personal funds. He now wanted to remortgage the properties at their current values to release equity from the company and repay the director's loans - returning his personal capital efficiently.
Our Solution
Doulton remortgaged all three properties at current values, releasing sufficient equity within the company to repay the director's loans in full. The lender confirmed that director's loan repayment is an acceptable use of equity release from a limited company remortgage, provided the company's financial position remained strong.
The Outcome
Three properties remortgaged. Director's loans repaid in full. The landlord recovered his initial personal capital while the company retains three income-producing properties with positive cash flow after the new mortgage costs. Key highlights: Director's loan repayment confirmed as acceptable equity release use; Three properties remortgaged at current values simultaneously; Personal capital recovered - company retains positive cash flow properties.