FRP Real Estate Advisory has arranged a £2.98 million refinancing of a 12-flat freehold block in Horsham, West Sussex.
The deal allowed the borrower to repay bridging finance and move to a five-year fixed-rate term loan from the specialist buy-to-let lender Rely.
It was FRP Real Estate Advisory’s sixth transaction with the borrower, following deals including a bridging loan and a development finance facility.
As part of the refinancing, FRP transferred the 12 flats into a new special-purpose vehicle and created an individual leasehold for each unit.
The structure allowed Rely to lend against the flats’ aggregate value instead of applying the block discount typically used for freehold purchases. The facility completed at a net loan-to-value ratio of 75%.
Corey Dennis, associate director at FRP Real Estate Advisory, led the transaction. FRP said he also negotiated the waiver of additional costs arising from a short delay involving the outgoing solicitors.
Dennis (pictured) says: “This is a deal I’m genuinely proud of. Given we needed to maximise leverage to exit the outgoing lender’s position, we had to get creative with the structure to ensure no block discount on the freehold MV would be applied.
“Alongside this, when something outside the client’s control threatened to cost them money, protecting them from that was simply the right thing to do. Seeing them come out the other side with a facility that finally reflects the true strength of their portfolio is a great result for everyone involved.”
Amanda Lammers, business development manager at Rely, adds: “Working with Corey and the team on this case was a great experience from start to finish. It’s exactly the kind of relationship we want to build with brokers, one built on trust and a shared understanding of what the client actually needs.
“We’re still a new lender to the market, so to have a completion over the line with an experienced team who know how to put a strong case together is a great win for us.”
