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Loan needed for large block of apartments


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Hi I am based in an apartment block in London with around 30 flats. I am on the board of directors. We have a combination of leaseholders and I believe some flats own the freehold too. We wanted to enquire into taking out a large loan in order to complete some much needed building works. We would then figure out how much is needed to be paid back by each flat over as many years as possible. Does anyone know a company that specialises in loans of this nature please ? Thanks 

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You'd be borrowing on the freehold, so we need to know how much thats worth. Its a commercial property loan and would likely be linked to the ground rents too.

The issue i find with these is that because the freehold isnt worth as much, and or ground rents are low, the loan is often limited and falls beneath the minimum loan amounts for commercial. Report some of the values mentioned though and a commercial broker like @kirsty_c might chime in.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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Its hard to comment on options and what is possible without understanding the how the various titles are arranged for the whole building. 

If each flat has its own leasehold title then this is where the majority of value will lie across the building attributed to each unit. (likely some of these will already have mortgages on from private owners). Unless the original Freehold still includes some flats it is unlikely to have much value on its own.  Obviously a lender can only lend to a percentage of the value of whichever title is being offered as security.

Could you elaborate a little around the title structure and values (particularly of the FH) vs the desired loan? Feel free to send me an email if you would prefer not to go into detail on a public forum. 

Regards

Kirsty

Property investor ¦ Commercial Finance Broker ¦ Ex banker with 20 years lending experience. 

Commercial Lending Manager at Real Finance Ltd - www.realfinance.co.uk
Happy to discuss any queries regarding property finance for  Company/Complex BTL, HMO, MUB, Holiday Let, Commercial, Bridging & Development.  

kirsty@realfinance.co.uk
07494949852

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