The transaction marks FRP Real Estate Advisory’s sixth deal with the borrower, including a bridging loan and a development finance facility – reflecting an advisory relationship that spans the full property life cycle.
Case Study
FRP Real Estate Advisory arranges £2.98m BTL refinance for portfolio in Horsham
The team arranged £2.98m to refinance a 12-flat freehold block in Horsham, Sussex, supporting the client in repaying a bridging loan.
Background
The refinance marks FRP Real Estate Advisory’s sixth deal with the borrower, including a previous bridging loan and a development finance facility – reflecting an advisory relationship that supports clients at various stages of their property plans. In this case, they needed to repay a bridging loan before moving onto a BTL term loan.
Action
Led by Associate Director Corey Dennis, the team structured the refinance to maximise leverage for the client and protect them from costs outside their control.
Key features of the facility include:
- Transferred the block’s 12 flats into a new special purpose vehicle and created individual leaseholds for each unit
- Enabled Rely to lend against the aggregate value of the flats rather than applying the block discount typically used for freehold purchases
- Facility completed at 75% net LTV
- Negotiated for costs from a short delay on the outgoing solicitors’ side to be waived, rather than let the client absorb them
Outcome
The refinance allowed the client to exit their bridge and move onto a facility that reflects the true strength of the portfolio, further deepening a six-deal relationship with FRP that now spans the full property life cycle.
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.
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Case Study
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