Butterfield Mortgages Limited has completed a £4.5 million financing deal for the acquisition of two central London buy-to-let properties valued at £7 million, structured through a holding company and two special purpose vehicles.
The London-based lender, which focuses on mortgages for high net-worth individuals, arranged the transaction at 65% loan-to-value across two corporate buy-to-let facilities. The borrower holds an existing portfolio of UK and international property assets.
Complex ownership structure
The transaction involved multiple structural changes during the application process. The ownership structure shifted from personal ownership to a holding company with two separate SPVs. One property required a concurrent lease extension, while the second needed refurbishment before being available for rental. The anticipated rental income also fell below standard buy-to-let stress-testing thresholds.
The deal comes as landlords navigate changing market conditions in the UK rental sector. Butterfield Mortgages assessed the borrower’s overall financial position, including net worth, liquidity reserves, existing property portfolio and wider investment assets, rather than applying standard lending criteria.
The final facility was structured to accommodate the planned refurbishment works, revised rental projections and the lease extension. The 65% LTV lending enabled the acquisition of both properties through the corporate structure.
Market context
Alpa Bhakta, chief executive of Butterfield Mortgages Limited, said: “High net-worth borrowers often have sophisticated investment strategies and ownership structures that can create challenges when seeking finance through traditional lending channels. In these situations, it is important to look beyond standard criteria and understand the client’s wider financial position and objectives.”
Bhakta added: “This transaction demonstrates our ability to support complex corporate structures and evolving circumstances while maintaining a flexible and pragmatic approach throughout the lending process.”
The deal reflects continued activity in the corporate buy-to-let sector, where investors with substantial lettings portfolios increasingly use SPV structures for property acquisitions. The transaction required coordination between the lender, borrower and their advisers as the ownership structure developed during the application process.
