A professional landlord duo owned a 5-bedroom HMO with a newly built standalone house on a single title, and they needed to refinance to extract capital for their next venture. We leveraged our specialist lender relationships to secure a 65% LTV interest-only facility, bypassing traditional multi-unit underwriting hurdles.
The Challenge
The clients faced several obstacles in securing the desired borrowing:
- Non-Standard Title: The HMO and the new-build unit were held under a single title, which most high-street lenders avoid.
- Complex Multi-Unit Deal: The addition of a standalone house with planning permission and a warranty moved the transaction from a basic Buy-to-Let (BTL) refinance to a multi-unit freehold deal.
- Borrower Profile: The age of the eldest applicant added another underwriting barrier.
- Raising Capital: The clients wanted to remortgage to release equity in the UK to fund future acquisitions.
The Strategy
To structure a deal that met the clients’ needs, we relied on our established relationships with specialist lenders:
- Specialist Alignment: We approached relationship managers and niche lenders who are comfortable with mixed-use and multi-unit freehold properties on a single title.
- Track Record Presentation: We emphasised the clients’ seven-year history and extensive experience in property development to mitigate concerns regarding the borrower’s age and complex property setup.
- Interest-Only Facility: We secured the loan on an interest-only mortgage on a UK basis at a competitive rate to maximise cash flow and unlock liquidity for their next purchase.
The Results
- Combined Property Value: Exceeds £1.1 million
- Loan-to-Value (LTV): 65%
- Mortgage Structure: Interest-only mortgage
- Interest Rate: Just over 5% (fixed)
- Key Outcome: Successfully repaid the existing lender, protected the portfolio’s cash flow, and extracted extra funds for the clients’ next property venture.
Why This Matters
When complex property portfolios feature mixed assets on a single title, rigid mainstream lending criteria can stifle your investment strategy. By securing a competitive rate on a specialist multi-unit facility, landlords can effectively raise capital for property investment without unwinding their portfolios or taking on unsustainable outgoings.
Speak to a Specialist
Ready to explore your options for a complex or multi-unit property refinance? Book a consultation with our team today.