Butterfield Mortgages provides £4.5m funding for central London BTL property acquisition

Butterfield Mortgages Limited (BML) has lent £4.5m for the acquisition of two prime central London BTL properties with a combined value of £7m.

The transaction involved an experienced property investor with an established portfolio of UK and international assets.

They were seeking finance to acquire the two properties through a corporate structure. 

During the application process, the ownership arrangement evolved from personal ownership into a holding company with two separate SPVs.

The case also involved a concurrent lease extension on one of the properties, while the second required refurbishment works before it could be fully marketed for rental purposes.

In addition, the anticipated rental income did not fully meet standard BTL stress-testing requirements.

BML considered the borrower's significant net worth, substantial liquidity reserves, broader property portfolio and wider investment assets.

The lender provided £4.5m of lending at 65% LTV across two corporate BTL facilities, enabling the acquisition of both prime London assets through the client's preferred ownership structure.

Alpa Bhakta, CEO at Butterfield Mortgages Limited (pictured above), said: "High net-worth borrowers often have sophisticated investment strategies and ownership structures that can create challenges when seeking finance through traditional lending channels.

"This transaction demonstrates our ability to support complex corporate structures and evolving circumstances while maintaining a flexible and pragmatic approach throughout the lending process.

“By working closely with the borrower and their advisers, we were able to deliver a tailored solution that supported both the acquisition and the client's long-term investment goals."