Tuscan Capital has secured new funding for portfolio landlords that means the lender has £150 million for buy-to-let portfolio cases.
Over the past 12 months, Tuscan has provided short-term financial solutions for portfolio deals from £750,000 to £9m across the UK, ranging from straightforward buy-to-let properties to HMO, commercial, and mixed-use property classes. These bridging loans were typically for 6 to 12 months.
With the new facility, coupled with its existing funding lines, Tuscan Capital can now fund buy-to-let portfolios up to £30m.
Colin Sanders, chief executive at Tuscan Capital, said: “Our new funding line demonstrates that we have both the appetite and capacity to service the needs of landlords with portfolio cases. Our proposition is very much about enabling the landlord to get from A to B where term lenders cannot.
“Our underwriting team are experts in assessing the risks in a portfolio and crucially are able to take a holistic view of the deal. Their expertise, together with our lawyer partners’ commercial and pragmatic approach, has helped us close out some of the most complex transactions which are also often extremely time sensitive.
“This significant additional funding line means Tuscan Capital now has all short-term property funding bases covered.”
Tuscan Capital has seen a significant number of professional landlords requiring funding to assist with their portfolio strategies over the past year.
These have frequently involved opportunistic purchases where landlords are presented with portfolios for sale from receivers, as well as ownership restructures where landlords may be transferring assets from personal ownership to SPVs or offshore structures.
Landlords have also been looking to refinance and/or capital raise where they may need to repay existing investors and/or invest capital for refurbishment or maintenance of the portfolio.
Tuscan Capital says the product exit will usually come in the form of a high street or ‘challenger’ bank’s term facility once the portfolio has stabilised its revenue or the refurb/restructure is complete.