Topland Group has agreed a £6.85m bridging loan with Arc & Co to help a private client refinance a portfolio of nine residential units in Hull and acquire a further 39 properties in the same building.
The loan has been arranged on a nine-month term, with low early repayment charges, at a new LTV ratio of 64% and a pricing margin of 5.5%. The bridging finance solution was reached following the pre-Christmas withdrawal from the market of a number of buy-to-let lenders due to temporary uncertainty. The private client will look to access a more orthodox long-term facility when the lending market stabilises.
Tom Savill, asset finance adviser at Arc & Co, said: “The changes in the buy-to-let lending market made this a challenging refinancing and acquisition process, but by working with the client we identified the best solution for this situation.
“Bridging finance – especially on the terms provided by Topland, with low early repayment charges – offered an approach that meant the client could achieve its aims while providing the flexibility to take advantage of more preferential long-term finance as and when the market allows.”
Anish Vora, structured finance manager at Topland Group, added: “We are delighted to provide another competitive funding solution to an existing client. Our structured finance team can fund across the capital stack and look forward to supporting real estate investors and developers in 2023. Thank you to Arc & Co, Knight Frank and Osborne Clarke for their support on this transaction.”
