Loan Amount:
£2,650,000
Property Value:
£3,775,000
LTV:
75%
Where multiple facilities exist within a single investment, it can add challenges to a deal. A borrower turned to us for refinancing to organise their portfolio, and capital raise for additional investments.
However, given there were so many moving parts to this deal, involving multiple loans and external factors, we had to get ahead of any potential issues before they had a chance to slow down the deal.
The borrower’s personal circumstances were also going through a substantial shift at the same time we were attempting to deliver funding. Given all the complexity here, our underwriter had to ensure everything aligned, and was accounted for before we could finalise the deal.
As Circumstances Change, So Do We
To start with, we factored in the borrower’s changing circumstances. To accommodate the changes, and make sure they fit in with our parameters, the underwriter made sure our funding was contingent on having certain documentation and agreements in place.
Beyond this, we organised our funding to ensure separate pots were put aside to cover each element of the deal – whether that involved capital for refinancing, covering potential shortfalls, or capital raising.
With everything organised, we focused on the exit strategy. The borrower planned to move onto long-term finance and as we assessed their ICR situation, we determined there shouldn’t be any affordability issues with this down the line. We delivered the multifaceted funding required.
Refinancing on the Brain
With the base rate recently being cut, and the prospect of more cuts on the way, many property investors will likely end up focusing on refinancing over the coming months. With all the challenges in the market, securing better terms would be a welcome relief.
Of course, if there’s a rush of activity, the race will be on to secure the best terms possible before any other negative headlines have a chance to emerge. Fortunately, we’re ready for this at Market Financial Solutions.
Our refinancing bridging loans can be issued in mere days where everything lines up. This can allow borrowers to reorganise their plans, bounce back following an unexpected delay or problem, or find better deals in the wider market.
Moreover, we have Bridge Fusion loans for longer-term plans, 2nd charge funding, and other products designed from the ground up to accommodate the complexities of the property investment market.
FAQs
What do you do when projects take longer than expected?
When development or conversion timelines extend beyond plan, we work closely with clients to reassess and adapt. We review revised project forecasts, confirm creditor plans, and keep funds aligned with new milestones. That ensures the loan remains fit-for-purpose and helps avoid unnecessary costs or fallout from delays.
How flexible are your loans when things change across multiple properties?
We specialise in financing diverse portfolios. If any part of a portfolio encounters delays or hiccups, we can adjust funding tranches and exit planning accordingly. Our flexibility comes from in-house underwriting and mature portfolio oversight capabilities.
How do market conditions affect funding for complex property portfolios?
In softer market environments, investors often hold existing assets longer to await better sales or refinance conditions. We understand that, and so our facilities allow for longer exit horizons or interest-only periods to reflect realistic timelines, rather than forcing rushed decisions.
What makes your approach strong when handling complex portfolios?
We’re able to respond to complicated situations because we make all decisions internally and structure funding around your unique mix of asset types and timelines. That means we can take into account things like multiple exits, varying completion dates, and cross-security collateral, all under one facility.
