Case Study, May 2020
Fast Flexible Finance Facility
Our client is an experienced landlord with a multi-million-pound property portfolio. Anticipating opportunity to purchase below market value over the next 12 to 24 months, he wanted to put in place a flexible finance facility that would enable quick completions on new acquisitions.
After assessing our client's portfolio, we advised him to put in place a revolving credit facility (RCF), these are sometimes known as a hunting license.
A hunting license is a flexible line of credit secured against a property portfolio that provides quick access to funds. It allows the investor to move quickly and has a range of uses which include, auction purchases, to fund a deposit, to fund an extension, refurbishment and improvement, new property purchase, refinance or working capital for a business.
As our client's portfolio was a considerable size, we worked closely with the client and the lender to ensure the case moved seamlessly through the underwriting process. We secured a flexible finance facility at a rate that outperformed the standard bridging loan rates our client had previously been using. We were also able to source lower compliance and set up costs with no non-usage fees.
The client now has a facility of £500,000 in place, it has aided in his negotiations on a pipeline of key investments. He has been able to commit to funds and move towards completion quickly, in the knowledge that funds are readily available.
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Flexible Property Finance
How much does it cost? Read our PDF guide outlining the two typical costing structures.
Flexible Finance Facility
What is it, how does it work and what can it be used for?