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Case Study- Financing a Unique Multi-Unit Block

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Periodically, we come across cases that we believe property investors would be interested to learn about. The summary below is one such case. We hope you find it helpful. 

The property

This property was a multi-unit block of flats consisting of 4 separate units situated in-between a hairdresser on one side, and a bakery on the other. Furthermore, all the units were below 30sq meters, which excludes most lenders. One was 27 sqm and the other 3 were 20.0 sqm, 20.6 sqm, and 19.5 sqm.  

For many lenders in the market, there is not much of an appetite to lend on these types of properties. Therefore, the level of expertise required to be able to find a solution is far greater than the knowledge needed to place a deal for a simple BTL mortgage. 

 Fortunately, here at Advocate Finance as specialist advisers, we were able to complete this said scenario with very few issues from start to finish. The key points are as follows: 

Client background

Our client is a very experienced portfolio landlord with a large portfolio including single lets, HMOs and multi-unit lets. They had previously tried twice to remortgage the subject property with different mortgage advisers. Both times the deal went all the way to valuation, only for the lender to then declare this was not something they could lend on, after reviewing the report due to the issues listed above. 

Client’s requirements

Our client wanted to re-mortgage this property which was held in their Ltd company, originally bought with cash resources a couple of years ago. The funds they were hoping to raise would go towards further property investment. They wanted to raise as much money as possible. The estimated value of the property was £200,000. 


After several calls with the client, enough information about themselves & the subject property was obtained to complete a case referral. This was sent out to multiple lenders in the market that we often place this type of business with. Out of all these lenders, only one lender was willing to proceed. The case and an application were submitted to them. Within only a few weeks, we had the valuation report back which came in higher than expected, at a value of 225k, and the lender was happy to lend off this increased valuation. The mortgage offer then followed, and within 2 weeks of it being issued, the deal went straight through to completion. 

The finance provided was as follows – 

A loan amount of £171,281.25 (75% loan to value) on a rate of 4.54% fixed for 5 years on a 30-year interest-only term. 

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. “

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Henry Barley

Senior Property Finance Adviser | | 01206 544333
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Picture of Henry Barley

Henry Barley

Senior Property Finance Adviser | | 01206 544333