Butterfield Mortgages provides £4.5m funding for London BTL acquisition
The transaction involved an experienced property investor with an established portfolio of UK and international assets.
Butterfield Mortgages Limited (BML) has lent £4.5m for the acquisition of two Prime Central London (PCL) buy-to-let properties with a combined value of £7m.
The transaction involved an experienced property investor with an established portfolio of UK and international assets.
They were seeking finance to acquire the two properties through a corporate structure.
During the application process, the ownership arrangement evolved from personal ownership into a holding company with two separate special purpose vehicles (SPVs), creating additional complexity and requiring a lender capable of adapting as the structure developed.
The case also involved a concurrent lease extension on one of the properties, while the second required refurbishment works before it could be fully marketed for rental purposes.
In addition, the anticipated rental income did not fully meet standard buy-to-let stress-testing requirements.
Recognising the borrower’s significant net worth, substantial liquidity reserves, broader property portfolio and wider investment assets, BML adopted a relationship-led underwriting approach to assess the client’s overall financial position.
The lending team worked closely with the borrower and their advisers throughout the transaction, ensuring momentum was maintained as the ownership structure evolved.
Taking into account the planned refurbishment works, revised rental projections and lease extension, BML was able to structure a bespoke lending solution aligned with the client’s longer-term investment strategy.
BML provided £4.5m of lending at 65% loan-to-value (LTV) across two corporate buy-to-let facilities, enabling the acquisition of both prime London assets through the client’s preferred ownership structure.
Alpa Bhakta, CEO of Butterfield Mortgages Limited, said: “High net-worth borrowers often have sophisticated investment strategies and ownership structures that can create challenges when seeking finance through traditional lending channels.
“In these situations, it is important to look beyond standard criteria and understand the client’s wider financial position and objectives.
“This transaction demonstrates our ability to support complex corporate structures and evolving circumstances while maintaining a flexible and pragmatic approach throughout the lending process.
“By working closely with the borrower and their advisers, we were able to deliver a tailored solution that supported both the acquisition and the client’s long-term investment goals.”
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