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The Client’s Situation
A professional property investor approached Advocate Finance to refinance two properties purchased six months earlier.
By offering a quick cash purchase, the client had secured both properties below their estimated market values. They now wanted to refinance against their current market values and release capital to grow their buy-to-let portfolio.
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The Challenge
As part of their original due diligence, the client had used automated online valuations to assess each property’s potential market value:
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Property |
Purchase Price |
Estimated Market Value |
| Property 1 | £125,000 | £184,000 |
| Property 2 | £245,000 | £338,000 |
| Total | £370,000 | £522,000 |
The client wanted the refinancing valuations to reflect these estimates.
Many lenders would require physical valuations in this scenario. The client was concerned that the recent purchase prices could influence the assessments, potentially limiting the capital available to release.
The challenge was to find a lender whose valuation approach suited the circumstances, while securing competitive pricing and a fast completion.
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Our Solution
Advocate Finance identified a specialist buy-to-let lender that could use the same automated valuation model (AVM) software the client had used during their due diligence.
We also structured the refinancing of both properties under a single loan. This took the total borrowing above £250,000, qualifying the application for a more competitive pricing bracket.
Combining the properties into one application also helped streamline underwriting and legal work. The lender’s ability to proceed without physical inspections and use title insurance supported a faster completion.
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The Result
Both properties passed the lender’s AVM checks at valuations matching the client’s estimates, giving a combined value of £522,000.
At 75% loan-to-value, the lender offered a loan of £391,500. This exceeded the combined purchase price of £370,000 by £21,500 before fees and other costs, allowing the client to recover the capital spent on purchasing the properties.
The refinance completed in just 22 days from application submission, with the funds in the client’s account and available for further investment.
This case demonstrates how selecting the right lender and structuring the borrowing effectively can help investors release capital, access better pricing and move quickly towards their next purchase.
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How We Can Help You?
Need a quick turnaround? Bought below market value? Looking to release capital for your next investment?
At Advocate Finance, we can help you find the right lender and structure to support your property goals and portfolio growth.
We provide a FREE assessment of all our services. Please contact me directly for more information, or use the Get in Touch With Us Today feature at the bottom of this page.
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FAQs
Can I refinance a property shortly after purchasing it?
Yes. Some lenders will consider refinancing properties that have been owned for less than six months, although criteria vary. The right lender selection can be crucial in these situations.
What does below market value mean?
A below market value purchase occurs when a property is bought for less than its current market value. This can create additional equity that may be available when refinancing, subject to lender criteria and valuation.
What is an AVM valuation?
An Automated Valuation Model (AVM) is a digital valuation tool that uses property data and comparable sales information to estimate a property’s value without requiring a physical inspection.
Are physical valuations always required?
No. Some specialist lenders can use AVMs or desktop valuations for suitable properties. This can reduce costs and often helps speed up the process.
Does refinancing multiple properties together have any advantages?
In some cases, combining properties under a single loan can improve pricing, reduce administration and help streamline underwriting and legal work.
How quickly can a buy-to-let refinance complete?
Timescales vary depending on the lender, valuation requirements and legal process. Where suitable lenders and valuation methods are available, completion can often be achieved much faster than traditional refinance routes.
Can first-time or less experienced investors refinance below market value purchases?
Some lenders will consider less experienced landlords, while others prefer established portfolio investors. Available options will depend on the overall strength of the application.
