Securing £780,000 of specialist finance for additional properties to add to a portfolio

What was the situation?

My client, a self-employed working professional within the property industry, approached me at the point of wanting to acquire more properties to add to their existing portfolio. Their portfolio included an unencumbered multi-unit freehold block of five 2-bedroom flats, but they wanted to expand.

The client wanted to borrow £780k against the £1.2mn valuation.

What was the issue?

During the time in which we spoke, the economy was volatile and interest rates on these types of properties were expected to rise, so the client was eager to secure the current rates available before any further rate rises, therefore minimising monthly payments.

What was the process?

Using my long-standing relationships with specialist lenders I was able to identify who could provide an ideal solution, with a competitive rate, for my client. Having approached one specifically, I understood that the selected lender had the most attractive product available for my clients circumstance because they were one of the few lenders who hadn’t yet increased their rates in line with the current market conditions. Knowing this, we needed to act quickly to submit the application in time.

The speed of progressing this application in time was assisted by our existing relationship with the lender. This helped us to understand when the rate was rising, and what documentation would be required in order to fully submit the application and secure the current product. The latter aspect enabled us to avoid any delays which may have caused the client to miss out on the deal if any documentation was not supplied in time. This ensured the case was looked at in a timely manner despite the lender being overwhelmed with applications.

What was the solution?

Despite rates changing hour by hour, we were able to secure a product at 65% LTV on a fixed rate of just over 4.5% per annum. This meant that the client could expand their portfolio without the overall yield of the security property being majorly impacted. We also were able to secure ‘non-rep’ legals which streamlined and sped-up the legal process, therefore saving the client money as they did not need to pay for a solicitor to act on their behalf.

Lending solutions with LDN Finance

Are you a property developer looking for a specialist finance loan to expand your portfolio?

At LDN Finance, our specialist team has extensive experience in securing short-term finance solutions suited to your circumstances – no matter the complexity. Working closely with our trusted network of private banks and specialist lenders, we’re sure to secure a bespoke arrangement for your project at competitive, market-leading rates.

Get in touch with us to organise an initial consultation.