Large Property Portfolio Mortgage Bristol

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 just above 3% for five years.