The Client
An experienced property investor with more than 25 years in the residential rental sector approached Capital B after identifying an opportunity to acquire 40 investment properties at auction across the West Midlands.
The portfolio consisted mainly of tenanted three to five-bedroom terraced and semi-detached houses, together with a smaller number of flats and HMOs.
The client already owned a portfolio of more than 110 properties, valued at around £25m and generating over £2m in annual rental income.
A newly incorporated SPV was established specifically to complete the purchase.
The Challenge
The transaction involved multiple moving parts and tight timescales.
Key considerations included:
- 40 properties purchased across multiple individual auction lots
- Two separate vendors involved within the same auction process
- Limited access to detailed property and tenancy information prior to purchase
- Tight completion deadlines following a full day of online bidding
- Three properties requiring updated EPCs post completion
- A lender able to support a transaction of this size and complexity.
With multiple properties, two vendors and auction completion deadlines to manage, the client needed funding that could be arranged quickly while also providing enough flexibility to stabilise the portfolio before moving onto longer-term finance.
The Solution
Working with Together, Capital B arranged a £3,841,875 unregulated bridging loan to support the purchase of the portfolio, which had a total acquisition cost of £5,122,500.
The funding was structured to meet the demands of the auction purchase while giving the client time to complete light refurbishment works, let vacant properties and refinance onto longer-term Buy to Let mortgages.
It included:
- 75% gross LTV against the purchase price
- A nine-month term with retained interest
- Funding completed within 12 working days of submission
- Flexibility to complete light refurbishment works
- Time to let vacant units before refinancing onto Buy to Let mortgages
The Outcome
The client completed the purchase of all 40 properties within the required auction timescales, adding a significant portfolio to their existing investments.
Neal Telford, Director of Bridging and Development at Capital B said:
“With 40 properties involved, the transaction required careful coordination from the outset. We worked closely with Together throughout the process to keep everything moving, resolve challenges as they arose and ensure funding was available in time for the client to complete the purchase.”
With time available to complete light refurbishment works and let vacant properties, the bridging loan also provided a clear route towards refinancing onto longer-term Buy to Let finance.
Why Choose Capital B Property Finance?
We regularly support property investors with acquisitions that require specialist funding, careful coordination and tight timescales.
This case study shows how the right lending approach can help keep complex transactions moving. If you’d like to discuss your next purchase, we’d be happy to have a conversation.
