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The Client’s Situation
The property was a multi-unit block of four self-contained flats, located between a hairdresser and a bakery. All units were under 30 square metres, with one at 27 sqm and the remaining three at 20.0 sqm, 20.6 sqm, and 19.5 sqm. Due to their size, the property fell outside the criteria of most lenders, making it a difficult block to secure finance on.
The client was an experienced portfolio landlord with a mixture of single lets, HMOs, and multi-unit properties. They had twice attempted to refinance the property through other mortgage advisers. On both occasions, lenders withdrew after valuation, citing the flat sizes as a reason they could not proceed.
The Challenge
The client held the property within their limited company and wanted to refinance it to release capital for further investment. Their estimated value was £200,000, and they wanted to raise as much as possible.
The main challenge was that most lenders refuse to lend on units below 30 sqm, and the client had already experienced two failed applications after valuation. The case required specialist knowledge and lender relationships to secure a viable solution.
Our Solution
We conducted several detailed calls with the client to gather all the required information about both the property and their portfolio. We prepared a comprehensive case referral and submitted it to multiple specialist lenders known to consider atypical properties.
Out of all the lenders approached, only one was willing to proceed. The full application was submitted, and the valuation was instructed. The valuation came back at £225,000, higher than the client’s expected value of £200,000. The lender accepted this valuation and agreed to lend based on the uplifted figure.
The mortgage offer was issued quickly, and completion took place within two weeks of the offer being produced.
The Result
The finance arranged was as follows:
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Loan amount: £171,281.25
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Loan-to-value: 75%
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Rate: 4.54% fixed for 5 years
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Term: 30-year interest-only
The client secured significantly more capital than anticipated due to the higher-than-expected valuation, and the refinance completed smoothly despite the unusual nature of the property.
Client Feedback
“Our experience with Advocate Finance was second to none. We had previously worked with two other commercial specialists who were unable to get us the re-finance on this multi-unit block. It had a few unusual features which meant that we needed to work with someone who could represent our situation clearly and accurately and ensure that the right lending was applied for. It was probably one of the most straightforward lending processes we have ever had! Henry took the details from us, presented the case to an appropriate lender, and within just a few weeks the survey was completed and shortly afterwards the money landed in our bank account.”
“What really stood out for us were three things working with Henry. 1) Excellent communication and regular updates 2) Professional and accurate information gathering at the start which hugely lessened the dreaded unending requests for further information prior to offer 3) Calm and quiet confidence which assured us (and was proven in the final result) that this team know their stuff when it comes to commercial finance.”
“In addition, we were delighted to achieve a valuation way more than we expected, and again this was in part due to Henry’s excellent handling of the case.”
How We Can Help You
If you own a multi-unit block of small flats, or a property that falls outside standard lending criteria, Advocate Finance can source lenders who specialise in complex, non-standard, or size-restricted units. Our expertise ensures your case is positioned correctly, giving you the best chance of securing finance and maximising capital raised.
