Client details: Our clients were professional landlords & developers, one a resident in the UK and the other an expat.
Property details: 18 individual houses in various locations around South London all let as HMO’s. Total portfolio value of these properties was £15.5m.
Reason for finance: The clients were minority shareholders in the limited company that owned the properties. The refinance was required to replace the existing borrowing and to also buy out the majority shareholder, leaving our clients as the sole shareholders of the portfolio.
Challenges faced: The transaction was time sensitive with completion of the funding required by a set date. Valuations were required for all properties, all of which were high value HMO’s in varied locations within London.
In order to complete the purchase of the shareholding 75% loan to value was required with all properties required to be under one facility.
Solution: Working with Shawbrook and using their AVM’s, (automated valuations) the majority of the 18 properties were accepted without the requirement for a physical valuation, minimising the time required and giving certainty to the valuation figures.
The time from application to completion was 6 weeks, with all parties in constant correspondence to achieve this timeframe.
75% LTV was achieved on a rate of less than 4% per annum, with the AVM placing a higher valuation on the properties than expected. This allowed the clients to also raise additional capital above the amount required to purchase the full shareholding.
Broker: Julian Ingall – email@example.com
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