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

20th February 2024

Guy Jones

Bath UK
Guy Jones

Guy Jones

  • Client: UK National & resident 
  • Property Value: Circa £780,000 
  • Loan Amount: Approximately £600,000 
  • LTV: 75%

In this case, Enness was approached by a long-term client looking to release funds from the recently refurbished multi-unit freehold block (MUFB) in the Southwest of England to recoup their funds for further property investments.  

The client had bought the property in cash less than 12 months ago and since then had refurbished the units to a very high specification in line with the other properties in their portfolio, allowing them to demand a premium in rent.

Due to the significant investment the client made in the property with their own funds, releasing the absolute maximum was of tantamount importance so that they could take advantage of further opportunities coming to the market.

Moving quickly, Enness were able to find a lender who could arrange an investment valuation on the property, meaning that the surveyor was instructed to take into account the yield of the property when valuing it. This resulted in an up-valuation of the property, bucking the trend of the property market in the area.

With rates as they are currently, many landlords are forced to fix them for five years due to the stress tests applied by lenders. This means that the client had to maximize the funds they could release from the property as they wouldn’t have another chance to do so for a good while and could miss out on further opportunities.

Enness has access to over 500 Lenders and can present the best possible terms to our clients to ensure they get the best result with their property financing. 

We can make the most of our contacts with the lenders and the valuers to make sure that everyone involved in the transaction is working towards the same goal.

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