United Trust Bank (UTB) was approached by a longstanding broker contact to refinance a client’s existing debt on a low yielding residential investment portfolio comprising apartment blocks and multiple single dwellings.
The client was an offshore registered company with shares owned by a discretionary trust. They had approached their incumbent lender to provide the refinance, but the lender declined to offer a solution which met their requirements.
UTB’s Structured Property Finance team offered the borrowers a two-loan solution.
Loan 1 was a 12 month, £3m Sales Bridge at 75% LTV secured against three properties which the borrower intended to sell. UTB agreed an acceptable split of sales proceeds which would release equity to enable the borrower to add value and improve saleability of the remaining property/s or alternatively facilitate a capital repayment on Loan 2, a condition of the loan which was required within 24 months.
Loan 2 was a £5m Residential Investment loan secured against four properties being retained. The exit for the Investment Loan will be refinance or sale at the term end. The combined loans totalled just over £8m with a combined LTV of 52%.
| Borrower | Private Landlord |
| Amount | £8.2m |
| Loan Type | Sales Bridge & Residential Investment loan |
| LTV | Sales Bridge – 75% Investment loan – 45% |
| Location | North London |
| Term | Sales Bridge – 12 months Investment loan – 60 months |
| Loan Purpose | Refinance |
| Special Features | Complex group structure & ultimate beneficial ownership |