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Case Information
Type of finance: Portfolio Landlord
Loan amount: £1.5m
Portfolio Value: £15m
Total debt across portfolio: £6m
Summary and Solution
In recent times buy to let investments have experienced a number of changes and the importance of extensive knowledge from your mortgage broker is imperative.
Our client had a portfolio of 35 properties which he had accumulated over a period of 20 years. He approached us with a number of scenarios he wanted to explore.
Personal Name to LTD Company
The client’s portfolio was currently in his personal name – he had advice from his accountant regarding moving the portfolio into a LTD company and wanted to see how he could re mortgage the portfolio. We were able present a solution for him with one lender with a competitive rate, negotiating the lender fee across the portfolio. The client decided this option was not suited and chose to keep the properties in personal names.
At the same time, we were instructed to provide a solution for our client to allow him lending fluidity - we arranged a Credit Line Facility.
He had recently started buying properties, adding value and selling them – the issue was that he needed to buy for cash to ensure he was able to secure a good buying price. He wanted a solution where he was able to use the equity in his portfolio to do this rather than tie up his personal funds.
We were able to arrange a credit line facility across part of his portfolio for £1.5m. The funds were ready and he was able to draw down as and when required and interest was only charged on the utilised funds.
This particular client wanted the flexibility of being able to complete on properties without having to use his own money whilst being able to do multiple projects at one time – the key points being; cheap lending rates, interest only charged on the facility being used and access to funds as and when they are needed. We achieved all of the above. The concept of providing solutions for our clients by understanding what they are trying to achieve helps us package and present the case to our lenders with confidence. This has helped our client to achieve higher profit margins against traditional bridging loans and work on multiple projects.
To discuss the refinancing or restructuring of your portfolio in the strictest confidence please get in touch using the below form.