Client details: A large portfolio landlord sought to raise capital for future investment property purchases. He wished to have the money raised and drawn down upon so that he could act fast and be a cash purchaser in future auctions and listed properties.
Property details: The client has an impressive portfolio of 45 residential units in SW and NW London, all let on an SSC basis held within the family for over 70 years. We raised funds against 18 properties in a portfolio loan.
Reason for finance: The client had 4 lending facilities with a single lender on 4 different amortisation periods, with different rates and tracking BOE rates.
With the recent base rate increases, the client wanted to refix current lending on a 5-year fixed product and open a lending facility with a lender who would allow him to draw £2m against his portfolio for onward investment purchases not yet found.
Challenges faced: With such a large portfolio, we had to find a lender who would allow for the lending exposure and a significant amount of capital to be drawn for property purchasing without those subsequent purchases lined up. Lenders will most commonly want to condition the lend to an additional purchase.
The property ownership was also held within an SPV, with family members being directors and not having a shareholding. The majority shareholder is 91, with another significant shareholder having Power of Attorney.
Solution: With such experience and strength in the portfolio, we quickly identified the right lender for the client and worked with a Challenger Bank that predominantly caters to professional landlords.
We were able to get from application to mortgage offer in just two weeks.
Monument Bank – Connor McDermott, Edwin Yamoah
Freeths LLP – Lucy Bradban
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