Portfolio Expansion - Adding Three New Properties Without Disrupting Existing Finance
£780,000 · 25 years · 5.45% fixed 5 yrs. A portfolio landlord with seven existing mortgaged properties wanted to add three further terraced houses to his portfolio.
The Client
Portfolio landlord
The Challenge
A portfolio landlord with seven existing mortgaged properties wanted to add three further terraced houses to his portfolio. The challenge was placing the new mortgages without triggering cross-portfolio stress tests that would call into question the existing financing. The three new properties were in a different geographic market to his existing portfolio.
Our Solution
Doulton identified lenders for the three new properties whose portfolio stress test methodology would not adversely interact with the existing portfolio. The new lenders assessed only the new properties against the stress test, not the whole portfolio. A single lender was used for all three new properties to streamline the application.
The Outcome
All three properties purchased and mortgaged without disrupting existing facilities. Portfolio now stands at ten properties across two geographic markets. Annual gross rental income from the new properties: £46,800. Key highlights: New properties placed without disrupting existing portfolio mortgages; Lender stress test methodology matched to portfolio structure; Three properties placed with single lender - streamlined process.