Experienced investors secure 40-property rental portfolio at auction with £3.8m bridging loan.

When the individual properties of a larger portfolio came up for sale at auction, an experienced real estate investor required a multi-million-pound short-term bridging loan to secure 40 assets to add to their existing rental portfolio.

The ask

With over 25 years of experience building an existing portfolio of 110 properties valued at £25m, the client recognised a strategic opportunity to significantly expand their portfolio when a larger REIT portfolio was being broken up at auction and had set up a newly incorporated SPV to manage the new properties.

The homes, located across the West Midlands, were predominantly tenanted three to five bed terraced and semi‑detached housing, alongside a smaller number of flats and HMOs.

The investors approached Neal Telford, Director of Bridging and Development at Capital B Property Finance, to source funding that could be delivered at scale, complete within auction timeframes, and remain flexible enough to accommodate the complexities of the transaction.

The solution

Neal brought the case to Andy Neo, Key Account Manager at Together, to see how we could help his client achieve their portfolio expansion.

“Our team has extensive experience in dealing with complex cases, auction deadlines and multi‑million‑pound transactions, so when Capital B approached us for support, we knew we had the flexibility, appetite and speed to deliver,” Andy explains.

One of the key complexities that our team needed to consider was the limited access to detailed condition reports and letting information across the full portfolio, due to the number of properties and speed of auctions.

Having spoken to the customer, understanding their extensive track record of purchasing and managing similar acquisitions, and hearing their plans on long-term refinancing to repay the bridging loan, we were comfortable to support the transaction.

We structured the £3.8m bridging loan at 75% gross LTV based on the purchase price, on a nine month term with retained interest, and provided the funds within 12 working days of submission. This gave the client the flexibility and certainty they needed to complete the individual property transactions across a range of completion dates.

The case was processed through Together’s Premier for Intermediaries, our dedicated service supporting brokers with their complex £1m+ deals across a range of personal finance and business lending scenarios.

The result

With the purchases all completed on time, the customer plans to carry out light refurbishments across the portfolio and relet any vacant properties before refinancing onto longer term Buy to Let mortgages. The plan will allow them to fully repay the bridging loan within the agreed term.

Neal told us: “Given the number of properties involved, it was essential that the case progressed quickly and with certainty. Together worked diligently to ensure challenges were addressed, communication was clear throughout and funding was delivered on time to meet the client’s requirements.”

The rental landscape is evolving with the implementation of the Renters’ Rights Act and upcoming EPC requirements. But Andy is optimistic about the future for landlords, especially after seeing a deal of this size completed on the eve of the changes.

“This case also demonstrates that experienced portfolio landlords continue to invest significant sums in the private rental sector despite the introduction of the Renters’ Rights Act. They still see strong opportunity in rental property and are willing to commit capital to acquire new stock.”

If you’re a landlord or broker looking for large scale financial support, reach out to our expert team to discuss your portfolio expansion, refinancing and refurbishment plans.