A property company letting residential units
required refinance as their incumbent provider left the market
- 25 residential investment properties
- First charge over portfolio
- From rental of properties
- Regular tenant turnover
- £2 million refinance
- Against a property holding company
- High management costs
- Low value properties
- Regional appetite from lender
- 5 year term
- Lower margin than previous lender
An Isle of Man trust company seeking to refinance GBP 2m within a property holding company. The portfolio of 25 investment properties based in Leicester, England, had high management costs and regular turnover of tenants.
Existing lenders were unable to extend or renew facilities following a decision to exit the sector. The portfolio was most suited to banks as opposed to funds, so great care had to be taken to ensure legal and valuation costs were timely and kept to a minimum.
In order to distribute maximum funds to the beneficiaries, an interest only facility was requested.