We completed a £17.5m interest only remortgage on a major residential apartment development in the South East of England.
The development comprises 103 private rented apartments across three purpose-built buildings, offering a mix of one, two and three bedroom units, alongside underground parking and secure cycle storage. The experienced developer clients intend to retain the scheme as part of their long-term rental portfolio strategy.
The transaction required a bespoke structure, with our Specialist Property Solutions team working closely with underwriting and completions throughout the process. This included undertaking valuation reviews and stress testing multiple loan exit scenarios, securing support for a non-panel new homes warranty provider, and structuring a deferred charge over the freehold to allow phased completions across the blocks and a smooth transition from the development funder.
We also completed bespoke interest cover ratio (ICR) calculations to support a policy exception, reflecting the true operational cost profile of the development.
Rental demand in the area continues to grow, supported by the recent opening of a new NHS hospital and university campus adjacent to the development, both expected to drive further employment growth and housing demand.
Marc Callaghan, Head of Commercial Mortgages, InterBay, commented: “This transaction demonstrates InterBay’s ability to structure large, complex residential investment deals with speed, confidence and a deep understanding of the PRS market. Our InterBay team worked closely with all parties throughout the process to craft a solution that matched the client’s requirements.”
Russell Hall, Executive Director at SPF Private Clients, added: “InterBay were the ideal partner for this transaction. The scale and complexity of the development required a lender that understood the asset and could move with confidence throughout the process. Their ability to structure a solution aligned with the client’s long-term rental strategy was invaluable.”
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