FRP Real Estate Advisory has arranged the £2.98m refinance of a 12-flat freehold block in Horsham, Sussex, enabling a portfolio landlord to repay an outgoing bridge and move onto a five-year fixed-rate term loan with specialist BTL lender Rely.
The transaction required structural work before the facility could be placed. FRP transferred the freehold block into a new special purpose vehicle and created individual leaseholds for each of the 12 flats. The approach allowed Rely to lend against the aggregate value of the individual units rather than applying the block discount that typically applies to freehold purchases, increasing the available leverage for the client. The facility completed at 75% net LTV.
The deal also involved negotiation on costs. A delay arising from the outgoing solicitors' side threatened to leave the client out of pocket for a process outside their control. Associate director Corey Dennis negotiated for those costs to be waived rather than passed to the borrower.
The refinance marks FRP's sixth transaction with the same borrower, a relationship that spans bridging, development finance, and now a BTL term loan.
"This is a deal I'm genuinely proud of," said Dennis (pictured).
"Given we needed to maximise leverage to exit the outgoing lender's position, we had to get creative with the structure to ensure no block discount on the freehold MV would be applied. Alongside this, when something outside the client's control threatened to cost them money, protecting them from that was simply the right thing to do.
"Seeing them come out the other side with a facility that finally reflects the true strength of their portfolio is a great result for everyone involved."
Amanda Lammers, business development manager at Rely, added: "Working with Corey and the team on this case was a great experience from start to finish. It's exactly the kind of relationship we want to build with brokers, one built on trust and a shared understanding of what the client actually needs.
"We're still a new lender to the market, so to have a completion over the line with an experienced team who know how to put a strong case together is a great win for us."
