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Bridging Finance for Portfolio Landlord

3rd November 2021

Toby Johncox

Bridging Finance for Portfolio Landlord
Toby Johncox

Toby Johncox

Key Facts:

  • Client: UK Based Portfolio Landlord
  • Property type: UK Property 
  • Property value: £5,620,000
  • Loan amount: £4,215,000
  • LTV: 75%
  • Rate: 0.39% PCM

For anyone seeking bridging finance, time is of the essence. However, if you want a short-term bridging loan, this is likely to be magnified. Fast to arrange and always individually negotiated, bridging finance can create liquidity to pursue business opportunities, grow a company, invest in a project or free up capital to pay off a different property - the possibilities are nearly endless.

In this case, our client was a UK based portfolio landlord who needed to raise money to complete a new property purchase in just 3 weeks. The property was valued at £3,400,000 and the client needed to raise £856,000 from their buy-to-let property porfolio by then. 

Many borrowers considering a short-term bridging loan know they will have a liquidity event in a few weeks or months. This might be if you have a significant sum of cash coming in from the sale of assets, shares or investments or from an event like the sale of a business, a divorce settlement or inheritance. As long as the source of funds and the way you receive the capital are within the confines of the law, the liquidity event itself is often of secondary importance to lenders. Lenders will be more focused on how certain it is that the money will come in when you think it will, and how much you will receive in comparison with the amount you are borrowing.

While keeping things moving quickly, Enness will first understand your situation and your financing requirements in depth: the opportunity you want to pursue and the amount you wish to borrow will influence who your broker approaches for finance.

In this case, we succeeded in arranging a bridge loan at a competitive rate that met the client's requirements. If you would like to hear more about short-term bridging finance and the different benefits they offer, contact us for a no-obligation chat.

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