"This case also demonstrates that experienced portfolio landlords continue to invest significant sums in the private rental sector despite the introduction of the Renters' Rights Act"
- Andy Neo - Together
Together and Capital B Property Finance have completed a £3.8m unregulated bridging loan, enabling an experienced real estate investor to purchase a 40-property rental portfolio at auction.
The properties came to market following the break-up of a larger REIT portfolio and comprise predominantly tenanted three to five-bed terraced and semi-detached housing, with a smaller number of flats and HMOs, all located across the West Midlands.
The borrower brings more than 25 years of property experience, having built a £25m portfolio of 110 properties generating over £2m in annual rental income. A newly incorporated SPV was established specifically to acquire the portfolio. Given the competitive auction environment, speed was critical, and Together delivered the bridging loan within 12 working days of submission.
"Our team has extensive experience in dealing with complex cases, auction deadlines and multi-million-pound transactions, so when Capital B approached us for support, we knew we had the flexibility, appetite and speed to deliver," said Andy Neo, key account manager at Together.
"This case also demonstrates that experienced portfolio landlords continue to invest significant sums in the private rental sector despite the introduction of the Renters' Rights Act. They still see a strong opportunity in rental property and are willing to commit capital to acquire new stock."
The transaction presented some practical challenges. Due to the number of individual lots and the nature of the auction purchase, the client had limited access to detailed condition reports and full letting information across the portfolio.
Together was comfortable proceeding, however, given the investor's track record in acquiring and managing large-scale residential portfolios. Only three properties within the portfolio lacked a valid EPC, and the client was confident these could be addressed quickly after completion.
The bridging loan was processed through Together's Premier for Intermediaries service and structured at 75% gross LTV based on purchase price, over a nine-month term with retained interest. That structure gives the client time to carry out light refurbishment works and let any vacant units before refinancing onto long-term buy-to-let mortgages and repaying the bridging facility.
"Given the number of properties involved, it was essential that the case progressed quickly and with certainty," said Neal Telford, director of bridging and development at Capital B.
"Together worked diligently to ensure challenges were addressed, communication was clear throughout, and funding was delivered on time to meet the client's requirements."
If you’re exploring bridging or development finance, get in touch and we can connect you with the right lender.
