A veteran landlord has just bought a 40‑property rental portfolio in the West Midlands at auction.

Together and Capital B Property Finance helped complete the £3.8 million unregulated bridging loan for the investor who has more than 25 years’ experience. He has built up a £25 million portfolio of 110 properties generating more than £2 million in annual rental income and established a newly incorporated SPV specifically to acquire the portfolio.

The properties were sold following the break‑up of a larger REIT (real estate investment trusts) portfolio, and comprised mainly tenanted three to five bed terraced and semi‑detached houses, as well as some flats and HMOs.

Deal

Together’s key account manager Andy Neo says the deal 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,” he adds.

Due to the number of individual lots and the nature of the auction purchase, the landlord had limited access to detailed condition reports and full letting information. However, Neo says the lender was comfortable supporting the transaction, due to the landlord's extensive track record in acquiring and managing similar large‑scale residential portfolios. Only three properties lacked a valid EPC, with he was confident could be addressed quickly post‑completion.

Loan

Processed through Together’s Premier for Intermediaries service, the loan was structured at 75% gross LTV based on purchase price, over a nine‑month term with retained interest. This will enable the investor to carry out light refurbishment works and let any vacant units before refinancing the portfolio onto long term buy-to-let mortgages, allowing the repayment of the bridging loan.

In another example of how larger landlords are continuing to invest in the sector, earlier this week GB Bank completed a £1.5 million refinance for an experienced borrower with a strong portfolio of HMOs, supporting their continued expansion strategy.

The facility refinanced an existing bridging loan onto a traditional buy-to-let term structure, while also incorporating an equity release element. This enabled the borrower to unlock capital and reinvest into further acquisitions, continuing to scale their portfolio.

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