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Experienced property investor portfolio
Experienced property investor portfolio
Case Studies

Experienced property investor portfolio

Landlord with 18 properties releases £2m equity across his portfolio to fund development project
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Project

An experienced property investor with a portfolio of 18 properties wanted to borrow £2m to invest in a development project.

His overall loan to value was 50% and spread across various lenders on some very good buy-to-let mortgage rates.

Even though he had an impressive portfolio of properties, the more traditional lenders were unwilling to offer the funds as the client had a relatively low income.

Finance

Our lender was able to offer the £2m required to invest in the development project and there were no monthly repayments.

On completion the development project was worth considerably more than the amount borrowed and the lender was paid back with the initial loan plus all rolled-up interest (compounded monthly) calculated using the applicable fixed rate.

Solution

Portfolio value (18 properties): £16,750,000
Loan amount (12% of the portfolio value): £2,000,000
Monthly repayment: £0
Loan term: Two years
Early Repayment Charge Two years - 5% of the loan
Fixed rate: 7.39%
Repay initial loan: £2,000,000
Rolled up interest: £317,511 - Interest is calculated daily and compounded monthly.

June 2016

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