Butterfield Mortgages Limited has provided £4.5 million to finance the acquisition of two prime central London buy-to-let properties valued at a combined £7 million.
The facilities were provided to an experienced property investor with an established portfolio of UK and international assets, who was acquiring the two properties through a corporate structure.
During the application, the proposed ownership arrangement changed from personal ownership to a holding company with two separate special purpose vehicles.
The transaction also included a concurrent lease extension on one property, while the other required refurbishment before it could be fully marketed for rent.
Anticipated rental income from the properties did not fully meet standard buy-to-let stress-testing requirements.
Butterfield said its underwriting instead took account of the borrower’s wider financial position, including their net worth, liquidity reserves, property portfolio and other investment assets.
The lender worked with the borrower and their advisers as the ownership structure changed, while also considering the planned refurbishment, revised rental projections and lease extension.
Butterfield ultimately provided £4.5 million at 65% loan-to-value across two corporate buy-to-let facilities, allowing both properties to be acquired through the investor’s preferred ownership structure.
Alpa Bhakti (pictured), chief executive of Butterfield Mortgages Limited, said: “High net-worth borrowers often have sophisticated investment strategies and ownership structures that can create challenges when seeking finance through traditional lending channels.
“In these situations, it is important to look beyond standard criteria and understand the client’s wider financial position and objectives.
“This transaction demonstrates our ability to support complex corporate structures and evolving circumstances while maintaining a flexible and pragmatic approach throughout the lending process.
“By working closely with the borrower and their advisers, we were able to deliver a tailored solution that supported both the acquisition and the client’s long-term investment goals.”
