Property value
£9.4 million
Low yield
Historic voids
Saving
£240,000
High value but-to-let in prime London with unsuccessful marketing
required loan renegotiation, benefitting from lower rates
The deal
Assets
- £9.4m residential property, buy-to-let
Security
- London property
- Equity portfolio
Income
- From rental
- From trading equities
Requirements
- £4.7 million refinance
Challenges
- Historic voids
- Low yield
- Seeking to sell
Facility Secured
- 5 year term
- Interest only
- Existing lender
Summary
A wealth management company were seeking to refinance an existing facility on a London residential property.
The challenges were that the property had been unsuccessfully marketed for the past 3 years, it had struggled to secure tenants, and that rental yield was low. The existing lender was concerned about the history and current LTV.
After negotiation, the facility remained with the existing lender. A new management and reporting plan was put in place and the security realigned to include an existing equity portfolio managed within the group, but to which no value had previously been placed.