Case Study · United Kingdom

Refinance mortgage loan for property investor to purchase additional assets

30 July 2021

Refinance mortgage loan for property investor to purchase additional assets

A property investor in Leeds, UK was able to secure a refinance mortgage loan to purchase additional assets and grow their portfolio. With the help of the loan, the investor was able to take advantage of new opportunities in the real estate market and further their investment goals. Rikvin Capital, a trusted name in financing solutions, provided the property investor with the necessary support to achieve their financial goals. With their expertise and knowledge of the market, Rikvin Capital was able to provide a customized and efficient loan solution that met the unique needs of the property investor.

Related: Read about when Rikvin Capital provided an experienced developer with a short-term loan to refurbish property

  • Location: Leeds, United Kingdom
  • Market Value: £11,850,000
  • Loan Amount: £1,485,000
  • Loan-to-Value: 10%
  • Duration of Loan: 12 Months
  • Payment Schedule: Monthly Interest Payment
  • Asset Type: Commercial Building
  • Completion Time: 7 Days

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FAQ

Can I refinance an existing UK property to release cash for new purchases?

Yes. The Leeds case here lent £1.49 million against an £11.85 million commercial building (10% loan-to-value) in 7 days, releasing capital for additional acquisitions without disturbing the borrower's existing portfolio.

How is loan-to-value calculated when releasing equity from an unencumbered property?

We calculate against the property's independent valuation. The Leeds borrower took only 10%, well below maximum, because they only needed enough capital for the next acquisition. We typically lend up to 65 to 70% of valuation on UK commercial property if you want to maximise borrowing.

How fast can a cash-out refinance complete?

7 to 10 working days for a clean unencumbered property where the borrower is known, as in this 7-day Leeds case. The legal work is straightforward (no existing lender to coordinate with), so the timeline is driven mainly by valuation.