Scenario:
The client wished to refinance a portfolio of five investment properties held within a limited company structure with multiple shareholders. The total portfolio was valued at £6 million, with an existing loan balance of £2 million. The goal was to secure a more competitive interest rate and raise additional funds to support future property acquisitions.
Challenges:
As a professional property developer, the client’s income was solely derived from development activity, something that many mainstream lenders view with caution. The nature of the business meant income could vary significantly year to year, with frequent property sales and purchases adding complexity to the financial picture. Additionally, the limited company structure and multiple shareholders living in UK and abroad added further layers of complexity to the application.
Solution:
Magni Finance approached a private bank experienced in working with professional property developers and complex company structures. The bank was comfortable with the client’s business model and offered a £3.2 million facility, including a flexible drawdown element. This allowed the client to refinance the existing debt, benefit from a more competitive rate, and access additional capital to fund further investments, all under one streamlined facility.
Key figures:
Property value: £6 million
Loan amount: £3.2 million
Repayment type: Interest only
Product type: 5 year fixed
Interest rate: 5.46%