£4.5m buy-to-let funding secured for two prime Central London properties through dual-SPV holding structure

Butterfield Mortgages Limited has provided £4.5m to fund the acquisition of two prime Central London buy-to-let properties with a combined value of £7m, structured through a holding company and two special purpose vehicles.

The London-based lender, which specialises in prime mortgages for UK and international high net-worth individuals, completed the transaction at 65% LTV across two corporate buy-to-let facilities. The borrower was an experienced property investor with an established portfolio of UK and international assets.

The transaction carried several layers of complexity. During the application process, the ownership structure shifted from personal ownership to a holding company with two separate SPVs. One property required a concurrent lease extension, while the second needed refurbishment before it could be marketed for rental. The anticipated rental income also fell short of standard buy-to-let stress-testing requirements.

To progress the lending, BML assessed the borrower's overall financial position, taking into account their net worth, liquidity reserves, existing property portfolio and wider investment assets rather than applying standard criteria. The lender worked with the borrower and their advisers as the ownership structure developed, maintaining progress on the transaction throughout.

The final facility was structured to account for the planned refurbishment works, revised rental projections and the lease extension, with the 65% LTV lending enabling the acquisition of both properties through the client's preferred corporate structure.

"High net-worth borrowers often have sophisticated investment strategies and ownership structures that can create challenges when seeking finance through traditional lending channels," said Alpa Bhakta, chief executive of Butterfield Mortgages Limited (pictured).

"In these situations, it is important to look beyond standard criteria and understand the client's wider financial position and objectives."

"This transaction demonstrates our ability to support complex corporate structures and evolving circumstances while maintaining a flexible and pragmatic approach throughout the lending process," Bhakta added.

"By working closely with the borrower and their advisers, we were able to deliver a tailored solution that supported both the acquisition and the client's long-term investment goals."