A client of ours recently completed the development of a 15-unit block of flats and sought to transition away from development finance. They had successfully sold two units but intended to retain the remaining ten units as long-term investments. To facilitate this, the client aimed to move the leaseholds into a Special Purpose Vehicle (SPV) separate from the development company, which owned the freehold.

The client faced several challenges in this transition:

• Managing lender exposure risk with 10 leasehold units within the same freehold property.
• The recent completion of the development meant that none of the units were currently tenanted, impacting cash flow and rental income.


We swiftly identified a tailored financing solution to address the client’s needs. Leveraging our network of lenders specialising in property finance, we secured a competitive 5.89% 5-year fixed-rate loan with a 0% product fee and a free valuation multi-property product. This innovative financing arrangement allowed the client to consolidate their financing needs by providing a single loan covering all ten properties. Furthermore, the loan facilitated the transfer of leaseholds into a dedicated SPV, ensuring clean and efficient management of the investment portfolio.

The client successfully secured financing that aligned with their long-term investment objectives while mitigating exposure risks associated with multiple leasehold units within the same freehold property. The competitive interest rate and favourable terms provided financial stability and predictability, essential for managing an investment portfolio.

With the financing in place, the client could confidently proceed with their strategy of retaining the remaining units for rental income. The streamlined process of moving leaseholds into an SPV facilitated efficient portfolio management and positioned the client for continued success in their property investment ventures. Our expertise in structuring tailored financing solutions ensured a seamless transition for the client from development to investment, enabling them to unlock the full potential of their property portfolio.