UK Multi Unit Freehold Block Refinance and Cap Raise for Portfolio Landlord

• Client: UK National & Resident
• Property: Recently refurbished multi-unit freehold block in the Southwest of England
• Property Value: Circa £780k
• Loan Amount: Approximately £600k
• LTV: 75%

Enness was approached by a long-standing client looking to release capital from a recently refurbished multi-unit freehold block in the Southwest of England. The objective was straightforward: unlock as much of the capital tied up in the property as possible and redeploy it into further investment opportunities.

The client had purchased the property for cash less than 12 months earlier and had subsequently invested significant funds into refurbishing the individual units to a high specification. The improvements brought the property in line with the standard of the client’s wider portfolio and allowed the units to command premium rents.

Because so much of the client’s own capital had been invested in the acquisition and refurbishment, the amount that could be released through refinancing was particularly important. The client wanted to maximise the available borrowing rather than leave capital sitting within the property while other investment opportunities were available.

One of the key challenges was obtaining a valuation that properly reflected the income-generating potential of the refurbished property. Enness identified a lender that was able to consider an investment valuation, allowing the surveyor to take the property’s rental yield into account when assessing its value.

This approach resulted in the property being valued above the level initially expected, despite broader conditions in the local property market. The stronger valuation provided additional borrowing capacity and helped the client achieve the level of capital release they were seeking.

The timing was also important. With current affordability and stress-testing requirements making longer fixed-rate periods common for landlords, maximising the capital released at the point of refinance was a priority. The client wanted to make the most of the property’s improved position rather than wait several years before having another opportunity to access its increased value.

Enness’ understanding of both specialist lenders and the valuation process helped bring the different elements of the transaction together. By identifying a lender comfortable with the investment valuation approach and working closely with the relevant parties, we were able to structure financing that reflected the property’s improved income-producing potential.

The resulting buy-to-let refinancing provided the client with approximately £600k of borrowing against the property. The released capital could then be redeployed into further property investments, allowing the client to continue building their portfolio rather than leaving a significant amount of their capital tied up in one asset.

This case demonstrates why the valuation methodology can be an important consideration when refinancing a recently improved investment property. Where substantial refurbishment has increased both the quality of an asset and its rental potential, the appropriate valuation approach can make a meaningful difference to the amount of capital that can be released.

Enness works with a broad network of lenders and has experience structuring finance around complex property portfolios and investment properties. If you are looking to release equity from a recently refurbished property, speak to a mortgage specialist to explore your options.

Risk Warning:
Property investment and buy-to-let finance carries risks. Property values and rental income can fall, while interest rates and other costs can change. Borrowers should ensure that the proposed borrowing remains affordable and that the repayment strategy is sustainable. Failure to meet repayment obligations could result in enforcement action against the secured property.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting, property assessment, valuation and lender criteria. Terms and availability will vary depending on individual circumstances and the proposed transaction.