Remortgage of 4 new builds onto 1 loan to repay development finance

The client: An experienced property developer and landlord with more than 20 years’ experience.

The property: Built by our client, a new development of four terraced houses in a West Sussex coastal town. All the houses are let on Assured Shorthold Tenancy (AST) agreements generating a total of just over £5,000 per month in rent.

The build had been funded using a combination of our client’s savings and a development loan.

The finance: The client wanted to refinance all four houses onto a buy to let mortgage and use the capital raised to repay the development loan. There were two main challenges with this case:

1. The client wanted one buy to let mortgage to cover all four properties.

2. There were two freeholds involved – one on the four properties and one on the land which provides access to the properties. More complex scenarios like this usually can’t be financed with the mainstream buy to let lenders so we approached a specialist provider which we knew could help.

We worked with the client to assemble the necessary documentation, which demonstrated the client’s extensive experience in the sector. We submitted the proposal and application form and a valuation was duly instructed. The surveyor’s report recorded that the properties were valued correctly and confirmed that the two freehold structure posed no issue.

Accordingly the following portfolio finance terms were offered which the client was happy to accept. Our case management team then ensure that the case completed successfully within a time frame that was acceptable to both the lender and our client. Here are the details: