StreamBank has completed a £642,000 bridging finance facility to support the acquisition and refurbishment of two buy-to-let properties in Kent.
The specialist lender provided the 12-month unregulated bridging loan against three properties, enabling 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 secured against three properties with a combined value of around £1.525 million, resulting in an overall loan-to-value ratio of 44%.
The borrower required a net advance of £575,000 to complete the acquisition and carry out light refurbishment works before refinancing the properties onto longer-term buy-to-let finance.
The deal, introduced by Ace Finance, involved several complexities. The borrower occupied the residential element of a semi-commercial property that also housed their self-employed business, a café operating from the commercial unit. Equity from the semi-commercial asset, which had previously been gifted to the borrower, was used to support the purchase of the two investment properties.
Following completion of the refurbishment works, the borrower plans to refinance both the buy-to-let properties and the semi-commercial asset, providing the exit strategy for the facility.
“On paper, this looked like a relatively modest leverage transaction, but the reality was considerably more nuanced,” said Aiman Maklad, business development manager at StreamBank (pictured).
“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 higher 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, said the transaction highlighted the importance of collaboration between broker and lender.
“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.”
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