Together completes £3.8m bridging loan for 40-property auction portfolio

Together and Capital B Property Finance have completed a £3.8m unregulated bridging loan for an experienced real estate investor to buy a 40-property rental portfolio at auction.

The properties were brought to market following the break‑up of a larger REIT portfolio, comprised predominantly of tenanted three to five bed terraced and semi‑detached housing, alongside a smaller number of flats and HMOs, located across the West Midlands.

The client has more than 25 years of experience, building up a £25m portfolio of 110 properties generating more than £2m in annual rental income and established a newly incorporated SPV specifically to acquire the portfolio.

Given the competitive auction environment, they required funding that could be arranged quickly to secure the opportunity.

Together delivered the large bridging loan within 12 working days of submission.

Andy Neo, key account manager at Together, said:

“Our team has extensive experience in dealing with complex cases, auction deadlines and multi‑million‑pound transactions, so when Capital B approached us for support, we knew we had the flexibility, appetite and speed to deliver.

This case also demonstrates that experienced portfolio landlords continue to invest significant sums in the private rental sector despite the introduction of the Renters’ Rights Act.

They still see strong opportunity in rental property and are willing to commit capital to acquire new stock.”

Due to the number of individual lots and the nature of the auction purchase, the client had limited access to detailed condition reports and full letting information across the portfolio.

However, Together was comfortable supporting the transaction, given the investors’ extensive track record in acquiring and managing similar large‑scale residential portfolios.

Only three properties within the portfolio lacked a valid EPC, with the client confident these could be addressed quickly post‑completion.

Processed through Together’s Premier for Intermediaries service, the multi‑million‑pound bridging loan was structured at 75% gross LTV based on purchase price, over a nine‑month term with retained interest.

This enabled the client to carry out light refurbishment works and let any vacant units before refinancing the portfolio onto long term Buy to Let mortgages, allowing the repayment of the bridging loan.

Neal Telford, director of bridging and development at Capital B, said:

“Given the number of properties involved, it was essential that the case progressed quickly and with certainty.

Together worked diligently to ensure challenges were addressed, communication was clear throughout and funding was delivered on time to meet the client’s requirements.”

FOLLOW ON GOOGLE NEWS