Securing £4m of Debt to Grow a London Property Potfolio

Acquiring a property without any cash input can be challenging, but we were able to leverage this client’s existing portfolio to secure the purchase of a new HMO.

Loan Size: A combined total of over £4m of debt secured

Location: Four Locations across NW London

Loan Type(s): Bridge, Term & BTL

Security Type: Multiple Securities

Term: From 9 months (with no ERC) and BTL term mortgage

 

About the Deal

We were approached by a client with the opportunity to purchase an HMO at Below Market Value (BMV). This property was to be added to their existing Buy-To-Let portfolio, but the purchase needed to be completed quickly.

The Challenge

Unfortunately, even with the property being sold at BMV, the client did not have the necessary funds to make up the shortfall on a purchase bridge. We determined that the best solution to raising these funds would be to utilise three other properties in the client’s portfolio.

The Results

By completing second charges on two properties and remortgaging a previous bridge onto term debt, we raised enough funds for 100% of the purchase. The client was able to acquire a property which they otherwise couldn’t have, without any cash input.

We also assisted with the subsequent refinancing of the first and second charge bridges onto term mortgages. By working with three different lenders across a total of four properties, the client now has a new income-generating property, a portfolio which is stronger than ever, and no longer has any outstanding bridging or short-term finance on any of their properties.

Article By Jacob West

June 20th, 2024

Jacob is an Associate at Pure structured Finance. A First-Class BSc holder and University of Surrey Graduate, Jacob has a strong background in specialist property finance, having previously worked for a bridging and development lender in underwriting, case management and risk analysis.

Jacob has now turned his focus to providing a bespoke service to clients; offering insight into how lenders operate, underwrite cases, and make decisions. Jacob supports the team as they present cases to lenders and manage ongoing transaactions.

Email: jacob@purestructuredfinance.co.uk

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