Refinancing properties can be tricky, especially when dealing with multi-unit titles, but at Diamond Property Finance, we thrive on these challenges. Recently, we navigated a particularly complex case involving the refinance of a client’s buy-to-let (BTL) property within a multi-unit freehold transaction.
Case Profile:
Our clients, a professional landlord father-and-son duo, owned a 5-bedroom house of multiple occupancy (HMO) and had recently constructed a 2-bedroom standalone house at the end of the garden.
With full planning permission granted and a new build warranty received, the transaction became a multi-unit freehold deal rather than a straightforward BTL refinance. The combined value of these properties exceeded £1.1 million, and the client aimed to borrow 65% loan-to-value (LTV) on an interest-only basis.
Solution:
The primary challenge was that both dwellings were on a single title, a situation most lenders typically avoid. Additionally, the age of the eldest applicant posed another hurdle. Having known our clients for over seven years, we understood their circumstances well and communicated the initial challenges to them effectively.
Despite the non-standard title, we positioned the case to lenders who we believed would consider the clients’ strong track record as borrowers and their extensive experience in property development.
Leveraging our long-standing relationships with specialist lenders, we were able to secure funding at 65% LTV on one mortgage across the two properties on the single title. We achieved a fixed interest rate of just over 5% with a lender who understood the unique property setup and was willing to lend across both properties, without age being a concern.
Securing this mortgage enabled the client to repay the existing lender and extract additional funds for their next property venture. The clients were delighted with the outcome, and we look forward to more successful transactions in the future.