Portfolio Refinance
Birmingham
£3.1m
Loan Amount
9 months
Loan Term
28 days
To Completion
0.75% a month
Rate
62%
LTV
The Challenge
A portfolio investor had five commercial properties across Birmingham — two retail units, an office, an industrial unit, and a mixed-use building. Each had a separate loan with a different lender, all at different rates and terms. One facility was expiring in 6 weeks, another had punitive extension fees about to kick in. The investor needed to consolidate everything quickly.
The Complexity
Five properties meant five valuations, five sets of legal due diligence, and coordination across five existing lenders for redemption statements. The mixed-use building had a residential element which some commercial lenders wouldn't include. Two of the properties had sitting tenants on rolling contracts rather than long leases, which reduced their attractiveness to mainstream lenders.
How We Structured It
We found a single lender we work with who was comfortable taking the entire portfolio as a cross-charged facility. This gave better leverage than individual loans because the combined security was stronger. We managed all five valuations simultaneously, instructed one solicitor to handle all five redemptions, and negotiated early exit from the expiring facility to avoid the extension fees. The mixed-use property was included by structuring it as the secondary security.
The Outcome
Completed in
28 days
Rate achieved
0.75% a month
Total finance cost
£308,528
Result
£420k capital released
How the days went
- Day 0Five commercial properties, five loans, five lenders. One facility expires in six weeks and another is about to trigger punitive extension fees.
- In parallelAll five valuations run at the same time. One solicitor is instructed to handle all five redemptions, with statements requested from each existing lender.
- PlacementOne lender we work with agrees to take the whole portfolio as a cross-charged facility. The mixed-use building goes in as secondary security.
- Day 28Completion. The expiring facility is repaid and the extension fees are avoided; about two weeks of the six remained.
What nearly broke it
Coordination. Five redemption statements from five lenders had to line up, each existing lender had to release its charge, and the new facility could not complete until all of them had. The mixed-use building also had a residential element that some commercial lenders would not include, and two properties had sitting tenants on rolling contracts rather than long leases.
If you are in the same position
With several lenders to repay, the paperwork sets the pace, not the pricing. Ask each lender for its redemption statement and exit terms early, and have one solicitor run all of them.
Related: Bridging refinance · Bridging loans in Birmingham
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