Multiple potential hurdles overcome to issue funding for multiple BTL properties simultaneously

case study overseas foreign national

Loan Amount:
£2,721,000

Property Value:
£3,665,000

LTV:
75%

We’re used to dealing with complicated cases, but it can be a particularly interesting challenge when multiple complexities come together in a single deal. A borrower needed funding for multiple residential properties. On top of this, the buyers were foreign nationals based overseas, which made things slightly more complicated from an underwriting perspective.

With so many potential hurdles to overcome, our underwriter Emma-Leigh Williams, had to adapt to get the deal over the line.

Fortunately, we had an established relationship with the client, which helped iron out the creases.

The sheer scale of the investment presented a unique challenge

With a vast property portfolio already under their belt, the client wanted to add newly built, prime location residential assets into the mix. Funding was needed to exit an existing facility but from the outset, certain challenges emerged.

While being an experienced landlord in the UK property market, the investors were foreign nationals based overseas. Additionally, during the background checks, a few issues came to light which could have slowed down the deal. As there were so many properties, the valuation had to be split across two separate dates, potentially delaying the investment.

Fortunately, Emma-Leigh worked hard to ensure the deal went through without a hitch. By assessing the client’s wider background, we could see that the transaction was in line with the borrower’s history, while noting the properties all had lots of rental potential. Additionally, as there was plenty of scope in how the exit strategy would be covered, we were comfortable in issuing the loan.

Multiple buy-to-let purchases could become the norm

Buy-to-let demand could reach unprecedented levels over the coming years and as such, some landlords may opt to “buy in bulk”. Especially with the UK private rental sector expected to grow by 6.5% by 2025.

We’re already seeing signs of buying activity heating up. Some 74% of landlords plan to retain or add to their portfolios, while landlords bought more homes than they sold in the first quarter of 2022. This was the first time this has happened in six years.

Speed and flexibility may be the key differentiators in determining buy-to-let winners over the coming years. We can help with both. For everything else that a landlord might concern themselves with, check out our blog where we answer 17 questions buy-to-let buyers should ask themselves.

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