loan to value
A client with a £200 million property portfolio wanted to raise money for further property investment. This was also while giving themselves time to refinance existing loans to a cheaper lender. Assets they owned included a number of units above a well-known North London pub.
The units covered eight studio flats and two one-bedroom apartments. The client aimed to repay the current first-charge debt on these high-yielding rental properties and raise further cash. We suggested they take out a bridging loan that would give them the flexibility they needed.
As the client was trying to obtain cheaper term finance that was taking longer than expected, we structured a lending option that gave them a seven-month nil exit. It meant they could repay us with no charge. In removing specific fees, we took the pressure off the client, giving them more time to find the funding they required.
If the refinancing went past seven months, the product automatically switched to a buy-to-let loan. This gave the client added security that they could still achieve the refinancing and restructure of their portfolio even if there were unanticipated delays. It also provided certainty on completing this many units under one loan.
“Speed and certainty played a huge part in completing this deal. We were able to make available a much larger sum of money than high street lenders..”
Daniel Murray, Head of Sales, Octopus Real Estate