Multi-Unit Block of Flats: Timing the Refinance

The situation

An experienced property developer and landlord approached us regarding an eight-unit block of flats within a wider property portfolio. The existing finance was approaching the end of its early repayment charge period.



The Challenge

The facility was on a variable rate and required full capital-and-interest repayments. Rising interest rates made timing increasingly important.

The valuation approach was also critical. A conventional discounted block valuation could produce a very different result from valuing the individual flats separately.



Finding a way forward

We moved quickly to begin the application and secured the most appropriate rate available.

We also identified a lender whose valuation approach allowed the eight flats to be considered individually rather than relying on a discounted value for the block.



Completion was timed so that the new facility followed the expiry of the existing early repayment charges.

The Solution

The client avoided unnecessary early repayment charges and benefited from a valuation approach that better reflected the underlying value of the individual units.



Sometimes the right lender isn't simply the one offering the best rate. It's the lender whose approach to the property produces the right overall result.