Completing a development finance to buy-to-let refinance in the UK requires technical structuring and whole-market lender access. In this case study, Articus Finance secured a high-LTV, five-year fixed, interest-only buy-to-let mortgage for a £750,000 London development originally held offshore. By moving the arrangement onshore seamlessly, we delivered both rental flexibility and long-term investment stability for a high-net-worth client.
Introduction to Development Finance to Buy-to-Let Refinance
Transitioning from development finance to buy-to-let refinance successfully is a vital step for property developers. Development loans are designed for short-term build projects and are often expensive if extended. On completion, a smooth transition into a buy-to-let structure ensures the developer can secure competitive borrowing, retain the property, and earn long-term rental income. Offshore structures complicate this process, making it essential to use specialist lenders and bespoke packaging.
Client Background
Our client was a seasoned developer who had completed a newly built London property worth approximately £750,000. Initially financed with development funding offshore, the client wished to retain the property for rental yield. The offshore company structure which had served its purpose during the construction process became a problem when it came to refinancing within the UK lending system.
The ultimate objective: secure a high-LTV, interest-only buy-to-let facility, allowing income-focused returns rather than an immediate sale. Tax structure, intercompany ownership, and lender scepticism posed challenges that required expert handling.
The Challenge
Arranging a development finance to buy-to-let refinance with an offshore starting point presented several obstacles:
- Offshore Holding: UK lenders are restrictive towards offshore structures due to compliance and underwriting difficulties.
- Ownership Transfer: Moving the property from an offshore company to an onshore vehicle required careful legal and intercompany structuring support.
- Timing Pressure: Development finance was due to expire, and delay could mean high penalty charges.
- Lender Reluctance: Mainstream banks were unwilling to lend against properties transitioning from offshore structures.
- Borrower Requirement: The client wanted an interest-only facility at high LTV to maximise flexibility and leverage rental returns.
Our Solution
Articus Finance identified a specialist buy-to-let lender experienced in complex ownership structures and intercompany transfers. Acting swiftly, we engaged the lender’s credit team to ensure full understanding of the client’s circumstances. The bespoke application package included:
- Full documentation of the offshore ownership structure.
- Evidence of financial transparency, proving clear beneficial owner identity.
- Rental yield forecasting for the property, demonstrating affordability on an interest-only basis.
- Client’s previous track record of successful developments.
By negotiating directly with senior underwriters, we secured a five-year fixed, interest-only buy-to-let mortgage at a high LTV. This arrangement fully refinanced the development debt onto an onshore structure, eliminated penalty risk, and optimised long-term rental returns for the client.
Key Highlights
- Client Type: High-net-worth developer
- Property: Newly completed London property, ~£750,000 value
- Transaction: Seamless development finance to buy-to-let refinance
- Structure: Offshore to onshore conversion with intercompany transfer
- Mortgage: Five-year fixed, interest-only, high LTV
- Result: Refinance executed on time, fully mortgage-approved
Why Articus Finance Delivered
Arranging a development finance to buy-to-let refinance with offshore and intercompany complexities demands specialist skill. Articus Finance delivered by:
- Whole-Market Access: Working with lenders unavailable to mainstream brokers.
- Offshore Structuring Insight: Deep experience handling cross-border finance and intercompany transfers.
- Negotiation Strength: Directly engaging senior decision-makers to secure favourable LTV terms.
- Timely Execution: Ensuring the refinance completed before development loan expiry.
This outcome highlights why experienced, discreet financial intermediaries are essential in navigating complex real estate transactions.
Explore Related Insights
- Buy-to-Let Mortgages
- Foreign National Buy-to-Let
- Private Bank Mortgages
- Limited Company Buy-to-Let
- Interest-Only Mortgages
- Articus Case Studies
- Guides Library
- Mortgage Services
- Financial Conduct Authority (FCA)
Final Thoughts
This case demonstrates how development finance to buy-to-let refinance can be achieved smoothly even when offshore complexity is involved. Articus Finance tailored lender selection, structured a clean ownership transfer, and negotiated an attractive five-year fixed, interest-only arrangement—delivering security, flexibility, and profit potential for a high-net-worth client.
 
				 
								 
															
 
								 
								 
								 
								