Remortgaging million pound B2L portfolio solutions are challenging to construct particularly when the portfolio is a large one! I recently assisted a professional landlord who was remortgaging his buy to let portfolio of 28 properties. The value of the portfolio was approximately £10 million (£5 million of which he had borrowed) and five of the mortgages were due to expire. My client was cumulatively remortgaging million pound B2L portfolio properties in order to capital raise and reduce his personal, residential mortgage.
This scenario was fairly complex due to the number of smaller, lower-value properties which made up the million pound buy to let portfolio. This was complicated as lenders don’t typically like to lend at this level of exposure when the portfolio is so dissected – in different areas and differing levels of investment in particular as it makes them feel uneasy. Furthermore, lenders generally have a maximum number of multi-million mortgages allowed with them due to the risk level.
When my client approached me his portfolio was divided between well-known high street lenders, meaning that I had to approach more niche lenders which were not readily available on the high-street. The properties were also rented out to students – some even had more than 5 tenants – which many lenders tend to stay away from.