Buy To Let Portfolio Re-Finance

Mr and Mrs Gray have built up a trading business and portfolio of 48 residential investment properties in the Greater London area. Mortgages on the properties were provided via 11 mortgage providers and the portfolio geared up to an average 58 % LTV against. Average yield across the portfolio was 7%.

The clients wished to leverage further equity from the portfolio to carry out some major repairs / upgrades to 15 of the units and also to give them a pre-purchase facility to acquire further units at significant discounts. A project of this nature needing a significant amount of research and background information was assigned to our Investment Mortgage partner who initially commenced an audit of all mortgage redemptions on the existing finance arrangements alongside an updated valuation audit negotiated on special terms with a major panel valuer.

Developing and presenting the executive business plan to 3 major institutions we negotiated a complete progressive re-finance on commercial terms at 3.5% over bank base rate. This was enhanced by a rolling £950K forward purchase ‘cheque book’ facility to allow the clients to take advantage of future purchase opportunities. The clients overall savings on rates added a further £67,000 annually to the bottom line of the business.