StreamBank has completed a £642,000 bridging loan secured against three properties to support the acquisition and refurbishment of two buy-to-let properties in Kent.
The specialist lender provided the 12-month unregulated facility to enable the borrower to purchase two cottages in Sevenoaks for £525,000, while also releasing capital from an existing semi-commercial property in Dartford to fund refurbishment works and associated costs.
The transaction was structured across three properties with a combined value of around £1.525 million, resulting in an overall loan-to-value of 44%.
The borrower required a net advance of £575,000 to complete the acquisition and undertake light refurbishment works on the two buy-to-let properties before refinancing onto longer-term buy-to-let finance.
The case was introduced by Ace Finance and involved several complexities. The borrower occupied the residential element of a semi-commercial property that also housed their self-employed business, with a café operating from the commercial unit. Equity from the semi-commercial asset, which had previously been gifted to the borrower, was also used to support the purchase.
The planned exit strategy is to refinance both the buy-to-let properties and the semi-commercial asset following completion of the refurbishment works.
Aiman Maklad (pictured), business development manager at StreamBank, says: “On paper, this looked like a relatively modest leverage transaction, but the reality was considerably more nuanced.
“The borrower was looking to unlock equity from a semi-commercial asset while simultaneously acquiring additional investment properties and funding refurbishment works, all against a backdrop of tenancy related delays outside of their control.
“What made the difference was having a clear understanding of the wider objective from the outset. The borrower wasn’t simply raising capital, they were repositioning part of their property portfolio to create a stronger long-term income generating asset base.
“Throughout the process we remained focused on that end goal and worked closely with the broker to ensure the facility remained aligned with the client’s plans despite the delays encountered along the way.”
Nick Hepburn, co-founder at Ace Finance, adds: “Transactions like this are a good reminder that successful outcomes are rarely just about the funding itself. As the deal progressed, there were a number of moving parts that required ongoing communication between all parties involved.
“Our relationship with StreamBank meant we could have open and pragmatic discussions throughout the process. Having direct access to decision makers and a team willing to engage with the detail of a case gives us confidence when placing more involved transactions.
“That collaborative approach was particularly important here and ultimately helped deliver the outcome the client needed.”
StreamBank said the facility demonstrates how bridging finance can be used to support property investors looking to acquire, improve and refinance assets as part of a wider portfolio strategy.
