Harriet’s story - specialist lending for complex portfolios

Harriet is a 61-year-old self-employed property investor and an experienced landlord with 47 properties to her name. As a higher-rate taxpayer earning £145,000 a year, she’s well used to managing a busy portfolio and navigating the complexities that come with it.

Her latest project involved a leasehold flat valued at £440,000, and she was looking to borrow £270,000 against it. But this wasn’t a straightforward purchase. The flat was already owned by one of Harriet’s existing limited companies, and she wanted to move it into a newly formed SPV via a purchase.

On top of that, Harriet’s company structure wasn’t simple. It involved four layers, including a holding company, two parent companies, and an SPV, with one of the shareholders based in Australia. The deposit was being raised through an intercompany loan, and to add to the complexity, there was a short lease on the property and a connection between the freeholder and leaseholder.

While this type of case might make some lenders hesitate, at Foundation, we specialise in exactly this sort of scenario. We understand that professional landlords often have more intricate setups, and we’re well-equipped to support them.

Because we’re comfortable working with complex limited company structures and have no issue with intercompany loans being used for deposits, we were able to help Harriet. The size of her portfolio didn’t pose a problem, as we have no limit on background portfolio size, so whether it’s a handful of properties or dozens, we’re happy to take a look.

At Foundation, we’re one of the few lenders willing to consider cases where there’s a connection between the freeholder and leaseholder, provided the rest of the application is sound.

Thanks to this flexibility, Harriet was able to complete the purchase, secure her borrowing, and move ahead with her portfolio plans without any extra hurdles.

If you’re working on a case like Harriet’s, or one similar, get in touch with your Foundation regional area manager, we’re always happy to talk it through.

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