Residential Portfolio Refinance

Lending Query

Silver Oak Capital had been mandated to secure a like for like refinance of a central London residential portfolio for a professional landlord based in London. The lending requirement was for £5.3 million and this was to be secured on a portfolio of 10 London flats. The client requested ten individual mortgages (as opposed to a single loan) and instructed us to secure a pay rate of under 2.75% in order to win the business.

Client Circumstances

This client has built up his portfolio over a period of 15 years and had actively managed the properties very successfully. He had a clean credit profile and there for made it easy for us to advise on this transaction as the only real goal was to lower the cost of borrowing. All properties were well let on standard AST agreements with the tenants paying their rent annually or bi-annually.

Problems to Solve

A natural discrepancy existed with the clients’ expectations of the portfolio values and the professional valuers opinions. This would pose a problem in the event that the loan to values imposed but the lender might not allow for the full £5.3 million needed to refinance the existing facility. Due to the increase in values of properties in London post-Covid we were fortunately able to avoid this issue entirely.

Solution Provided

We placed this loan with the UK branch of an Indian Bank who offered our client the following lending terms:

70% Loan to Value
2.50% 5 Year Fixed
5 year term
Interest Only
£1,999 flat fee per mortgage