Overcoming Challenges in Complex Multi-Unit Financing

Project Background:

Our client needed to secure a Buy-to-Let remortgage to repay a development finance loan that was nearing its repayment deadline. The property in question was a £3.7 million multi-unit block with a unique setup: 21 separate titles, including leasehold flats and multiple houses, within the same street. This complexity made finding a lender willing to finance the project especially challenging.

The Challenge:

The property’s structure presented major hurdles.

Managing 21 separate leasehold titles was a logistical and legal hurdle most lenders were reluctant to tackle.

On top of this, the loan needed to be secured quickly to meet the looming repayment deadline for the development finance. The client required a solution that not only worked within the constraints but also provided favourable terms.

The Solution:

To address these challenges, we partnered with Kent Reliance. They agreed to a Buy-to-Let remortgage by taking charges over both the leasehold titles and the freehold. This innovative approach ensured the entire site could be financed under a single loan agreement.

The deal was structured as an interest-only loan of £2.7 million over 25 years with a fixed rate for the first five years. This provided the client with manageable monthly payments and stability, all while meeting the tight deadline for the development loan repayment.

The Outcome:

Thanks to a tailored approach and swift action, the client secured the £2.7 million remortgage just in time. Kent Reliance’s flexibility made it possible to finance the entire site, even with its unique complexities.

This deal not only resolved the immediate financial pressure but also demonstrated how even the most challenging property portfolios can be managed with the right expertise and lender partnership.