Project Silver

A portfolio of sixty properties, mostly buy-to-let residential, let at market-value rents, on ASTs. The debt against the portfolio was provided by 12 different lenders, all on variable mortgages, which all increased significantly and consecutively from the second quarter of 2021, due to the interest rate rises imposed by the Bank of England.

With rents generated by the properties no longer able to service the mortgages, we put in place a financial package which redeemed the mortgages which were nonperforming, recovering six of them from the mortgagee in possession; whilst clearing arrears that had amassed on the properties on which the rents had been falling short of the mortgage payments. We released a significant advance payment to the asset owner, which saw him redeem the interest only mortgage on his residential home, which was due to expire the following month.

We were able to structure a refinancing package which saw us redeem the mortgages on eleven of the buy-to-let properties, whilst renegotiating rents with the tenants. The remaining properties were sold off at market value, with a generous proceeds of sale agreement which saw us recoup the funds deployed, whilst allowing the asset owner to retain the larger share of the proceeds of sale.

Our tax advisory team played a critical role in assisting the asset owner by creating a tax efficient structure, whilst handling negotiations with his spouse who had recently filed for divorce.