Location: Bristol

Loan Amount: £11,000,000

Finance Category: Development Finance

The Story

Fox Davidson were approached by a client wishing to re-finance a multi-million-pound property portfolio in Bristol.

The portfolio of over 60 properties comprised of residential and commercial property, including student-let HMOs, short lease semi-commercial property, as well as family residential lets.

The Challenge

The challenge with securing large property portfolio finance is assessing the stock for condition, tenant profile, length, type of lease, and location.

Lenders have criteria with regards to the maximum loan to value, the maximum amount of commercial property in a portfolio, the tenancy type, and the loan-to-value.

The portfolio was part-owned in personal names and part-owned in an SPV Ltd company.

Their accountant had advised incorporating the whole portfolio and therefore the refinance would encompass some refinancing and some purchases from personal to corporate ownership.

The lending came in at 63% loan-to-value and our client required an element of interest-only.

The Solution

Fox Davidson work in the large loan arena and have some very good relationships with private banks and ‘challenger’ banks.

Funding large property portfolios requires an in-depth assessment of the stock, the yield and the lease terms of each property.

Having worked through the portfolio and having crunched the numbers, we were able to place the case with a bank that offered 50% interest-only, remainder capital and interest, and a fixed rate of 3.2% for five years.

 

Fox Davidson

Fox Davidson is an award-winning team of property portfolio mortgage brokers. For large property portfolio finance advice, please email enquiry@foxdavidson.co.uk or call us on 0117 989 7950.

We work with professional landlords to secure funding from £500,000 and up to £200m.

 

Wesley Davidson

Director & Property Finance Consultant

About: Wesley has been in the industry for 20 years and has a wealth of knowledge in all areas of property finance. His real passion is working with property developers on the funding of development sites. His work ethos is to constantly gain more knowledge in order to better himself and offer more to clients and to be contactable at all times, this sets him apart from his peers.

Favourite Film: Last of the Mohicans

Quote: “In complete darkness we are all the same, it is only our knowledge and wisdom that separates us. Don’t let your eyes deceive you.” – Fat Controller