The case in brief
- Client: UK National & Resident
- Property type: Property Portfolio Refinance
- Property value: £3.5m
- Loan Amount: £2.4m
- LTV: 68%
Useful guides related to this case study
Download our Guide for Buy-To-Let
Download our Guide for High-Net-Worth Individuals
Our Case
The demand for buy-to-let properties remains robust among our high-net-worth (HNW) clients, primarily driven by the long-term security and financial benefits these investments provide. Offering both rental income and capital growth, buy-to-let properties are a distinct asset class, appealing to investors for their unique advantages.
In this particular case, Articus was approached by an HNW client boasting a substantial North London portfolio comprising 8 properties, each held under separate limited companies.
The client sought to refinance the portfolio, secure more favorable terms, consolidate existing debts with a single lender, and release equity to acquire another property.
To gain further insights into navigating the intricate world of high-value debt for HNW individuals, you can download our High Net Worth Guide.
Our Client
This client was a British property investor facing challenges in remortgaging their portfolio of properties onto a competitive rate and high loan to value – click here for more information on how we can help portfolio landlords.
The client’s requirement for a 70% loan-to-value (LTV) , whereas most lenders, at this value, typically provide a maximum of 65% LTV was the first obstacle.
The second obstacle – the client’s only source of income derived from rental revenue, a factor less preferred by lenders who typically favor applicants with surplus income from alternative sources.
Our Solution
Identifying a lender willing to extend a loan exceeding the standard 65% LTV at this high loan value isn’t a simple task. However, we approached a building society with whom we have a longstanding relationship with. The lender displayed flexibility in accommodating the various high loan to value and effectively consolidated the debt into a single loan, aligning with the client’s requirements and objectives.
Should you need any assistance with your portfolio speak with one of our brokers today.