Internal Teamwork for a Complicated Deal with Multiple Properties

Loan Amount:
£1,340,000

Property Value:
£1,810,000

LTV:
74%

Sometimes, deals with particularly unique backgrounds need to be raised internally to ensure everything is accounted for. An experienced property investor required finance to cover an existing facility, and capital raise for business purposes.

But, all the properties were utilised by people with distinctive circumstances. These circumstances required our underwriter to flag the case internally before we could progress.

As our teams came together, we happily realised we could accommodate this deal, and comfortably handle the associated risk . This allowed the underwriter to get on with the task of assessing the case, and focus on the exit strategy.

Ruling out any foreseeable issues

By going through the details thoroughly, we determined that we wouldn’t have to take any additional precautions for this deal, so long as the solicitor involved reviewed the case before we proceeded. . As the underwriter was given the green light to move forward, they focused on the borrower’s end goals.

They planned to sell individual properties to cover our loan, or move on to long term finance. We noted that it would likely be easy for the borrower to sell other assets within their portfolio for the exit strategy, while external lenders should not have had any issues working with them.

Given that the potential exit strategies were viable, and all our internal teams were in agreement, we happily provided the finance needed.

Embracing uncertainty

Leaseholds are likely to be focused on by investors and lenders alike over the coming years as potential reform makes its way through parliament. While well meaning, legislative intervention inevitably leads to unexpected consequences.

As we’ve seen in the post-pandemic years, the unexpected caught many high street lenders off-guard. Mortgage deals were pulled, and eligibility criteria was tightened as the economy took a turn.

Fortunately, Market Financial Solutions was designed from the ground up to adapt to the unexpected, or the challenging. Since our founding in 2006, we have never stopped lending, and we have no plans to slow down any time soon.

FAQs

Can you support a first-time landlord purchasing an unusual property type?

Yes, we welcome first-time landlords, even when they’re acquiring an unusual property like a multi-unit freehold property. We take time to understand the client’s broader property experience and ensure they have robust financial plans, including solid exit strategies and evidence of rental demand. With all that in place, we can deliver funding in a matter of days.

How do you approach complex buy-to-let scenarios involving challenging financial backgrounds or market conditions?

We recently worked on a challenging scenario where market uncertainty and borrower complexity were high. In these situations, we adopt a diligent underwriting process that delves into rental feasibility, exit routes, and the borrower’s strategic planning. By focusing on the long-term viability of the investment, we arranged funding tailored to their project, even under complex conditions.

What advantage do you offer buyers competing in fast-moving residential markets?

When funding is needed quickly, such as a first-time landlord bidding in a competitive auction, we’re ready. We assess the borrower’s preparation level and project rationale, and once satisfied, we can issue finance in under a week if all is lined up. This speed means our clients can secure properties that might slip away with slower lenders.

Are there broader trends in BTL that new landlords should know about?

Yes, while rising costs are causing some existing landlords to exit the market, rental demand remains strong. Market Financial Solutions’ market research showed that approximately 84 percent of remaining landlords plan to retain their portfolios over the next year, and around 4 percent intend to expand. For newcomers, that signals opportunity, and our specialist financing is tailored to help them move fast and confidently.