Arc & Co. has completed a £3,562,500 buy-to-let (BTL) loan, secured against 19 newly completed apartments in Kent.
The development, initially conceived as a build-to-sell (BTS) project, successfully pivoted to a build-to-rent (BTR) model after the local council agreed to lease all units under a 5- to 10-year fixed annual premium agreement, providing the borrower with a stable and predictable income stream.
The £3,562,500 loan was agreed at a loan-to-value (LTV) of 70% for a term of 5-years.
The borrower – a UK national originally from outside the country – was seeking a loan against the unencumbered asset to repay investors and release equity for further expansion of their portfolio.
Nikita Nigai, head of international at Arc & Co., originally worked with the borrower in 2022 to support the financing of their first BTL portfolio.
That experience proved invaluable in navigating this more complex transaction, including access to improved terms.
Nigai encountered challenges with initial prospective banks: higher rates, conservative LTVs, and strict background checks for the first-time developer.
Ultimately, a lending partner was selected on the basis of flexibility and competitive pricing, as well as a willingness to understand the borrower profile and back the project based on the secured council lease.
Nigai said: “It is vital that we have access to lenders who have the appetite to support complex borrowers and property types, while remaining competitive on price.
“Returning clients feel the benefit of having a specialist adviser in their corner, helping to achieve the best possible terms as they grow and expand.”
