- +44(0)208 427 5057
- enquiries@london-fs.com
- 7 Bell Yard, London, WC2A 2JR
Providing smart, creative solutions for Mortgages, Investment and Bridging Finance for Professionals & Company Directors with Complex or Multiple Income Streams. Speak with an advisor – T:+44(0)2084275057
Case Information
Type of finance: Portfolio Finance
Loan size: £2m
Overall Portfolio Value: £8m
Portfolio Re-finance Value: £2.75m
Summary and Solution
Discussions with our client were mainly around making the equity in the portfolio work for him. Majority of his tenants had been in the properties for several years - and his long-term plan for the properties had always been capital growth rather than immediate income. His view was that a long-term tenant paying a reduced rent was better than short term tenants paying a higher rent.
The client wanted to release some of the equity to investment in other projects, he was faced with the challenge of loans being restricted based on rental income and also his portfolio being too large for many of the mainstream lenders.
As part of our role with our clients, we assist wherever we can. We prepared an extensive report detailing each individual property and the potential equity that could be raised with current day valuations and what his potential monthly mortgage payments would be. He was then able give this information to his accountant and confirm which properties needed re-financing.
We were able to raise £2m across five properties @75% using a lender who would not:
- Stress test the portfolio in the back ground and
- Work a rental stress of 125% @ payrate which was 3.79%
It is so important for Portfolio Landlords to have the right accounting and mortgage advice and we work with our clients accountants to ensure the solution we present is in the best interest of our client.
To discuss the refinancing or restructuring of your portfolio in the strictest confidence please get in touch using the below form.