Large loan for eight flats with complex ownership structure

We were approached by a broker whose clients, both chartered accountants and experienced property investors, were looking for finance. They are directors and part shareholders of several limited companies.

They had recently completed development of a block of 22 flats – 14 of these had already been sold, but they wished to remortgage the remaining eight flats onto a buy to let mortgage. This would allow them to repay the development loan and replenish the cash spent.

Rather than a simple remortgage, the clients had chosen to sell the flats on a long leasehold basis to one of their investment companies. The development company would then retain the freehold, while the investment company would let the flats for profit.

The clients’ broker was struggling to find a lender who understood this complex arrangement, so he came to us for assistance. As a further challenge, the clients wished to mortgage all eight properties on a single facility, which is more than most lenders will consider.

Luckily we have a good relationship with a commercial lender that was happy to talk the case through with the clients and take a view on the overall situation.

This lender has a high lending limit which was key for the clients as they were progressing two additional large loan applications at the same time. The client agreed to the following terms: