Loan type: Semi-Commercial Mortgage | Loan value: £8.2m | LTV: 67% | Term: 5 years
This case study showcases how strategic refinancing can alleviate financial pressure. By leveraging our expertise and strong banking relationships, we successfully guided a professional landlord through a complex refinancing process, resulting in significant financial benefits.
The Client:
Our client is a professional landlord, with a large portfolio and many years of experience investing in property.
The Situation:
In late 2022 and throughout 2023, the rapid rise in interest rates presented a significant challenge for our client. With the standard variable rate on a number of loans becoming unmanageable. In addition, there was also a S106 in place against one of the properties, which would require a substantial amount of capital to clear.
Our Solution:
After reviewing the client's portfolio, we identified a 16 bed semi-commercial property which contained 4 commercial units on the ground floor which would be suitable for refinancing. Working closely with a bank we structured a facility with a bespoke rate, that would allow the client to exit their high-rate loans onto a more favourable facility.
Benefits & Results:
In addition, we were able to capital raise an additional £1.8m which allowed the client to pay off the outstanding S106, enabling them to unlock the true rental value of their property moving forward.
Timing in this case was key as we needed to ensure that the new facility was delivered at the time the client was ready to exit other high-rate loans.
Our long-standing relationship with the bank meant that we were able to engage directly with senior management to create a bespoke facility that perfectly met our client's needs.
