12-Flat Portfolio Purchase, Scottish Borders
Twelve flats.
One facility.
A deal others declined.
A tenanted portfolio.
Sub-£50k unit values.
Lender after lender out.
An experienced buy-to-let investor, purchasing through his SPV, agreed terms on a portfolio of twelve tenanted flats across Hawick and Galashiels in the Scottish Borders at a combined price of £676,500. The problem: individual unit values as low as £30–50k and a Scottish postcode put the deal outside most bridging lenders' criteria — several declined on location or minimum unit value before terms could even be discussed.
A portfolio most lenders wouldn't touch.
- Individual flat values of £30–50k — below most lenders' minimum unit value
- Scottish Borders location ruled out lenders focused on England or the central belt
- Multiple lenders declined before terms could be negotiated
- Full RICS valuations required across every unit — no desktop shortcut
- Valuations returned below expectation on several units mid-deal
- Damp & timber surveys demanded on a number of the older tenement flats
Placed on aggregate value — and restructured to completion.
- Placed with a specialist lender lending at 75% of aggregate portfolio value rather than per-unit minimums
- £570,000 gross facility at 0.85% pcm, serviced — keeping the total cost down
- Arrangement fee negotiated from 2% down to 1.75%
- Down-valued units removed and substituted with additional security from the client's existing portfolio
- An additional £40,000 net negotiated to preserve the client's cash liquidity
- Term extended to 12 months — with interest only payable for time actually used
Aggregate-Value Lending. Per-Unit Minimums Bypassed.
Individually, the flats fell below the minimum unit values most bridging lenders will accept. We placed the deal with a lender prepared to underwrite the portfolio as a whole — 75% of aggregate value across all twelve securities, where the deal stacked up even though no single flat did.
Down-Valuations Restructured. Not Abandoned.
When full valuations returned below expectation on several units, the deal didn't die. Underperforming units were removed from the purchase, additional security from the client's existing portfolio was substituted in, and the facility was re-papered — keeping the purchase on track at the right numbers.
Negotiated Throughout. Cash Position Protected.
The arrangement fee was negotiated from 2% to 1.75%, an additional £40,000 net was secured to keep the client liquid through completion, and the term was extended to 12 months with interest charged only for time used — protecting both the deal and the exit refinance.
The Timeline
From first enquiry to drawdown — a complex portfolio held together through valuation, restructure and legals.
Whole-of-Market Placement
Enquiry packaged and placed across the market the same day. Several lenders declined on location and unit values — Hope Capital issued an agreement in principle at 75% of aggregate value within hours.
Credit-Approved Terms
£570,000 gross at 0.85% pcm, serviced, credit approved. Arrangement fee negotiated down to 1.75%. Formal loan terms issued and signed within the week.
Valuation & Restructure
Full RICS inspections across both towns. Down-valued units removed, additional security substituted, damp & timber surveys procured and cleared — revised terms issued without losing the lender.
Legals & Completion
Scottish conveyancing coordinated across twelve titles. Undertakings paid, securities perfected and the purchase completed — portfolio secured, BTL refinance exit in motion.
"Low-value units, a postcode most lenders won't touch, and valuations that moved mid-deal — this is exactly the kind of purchase that dies without the right broker. We placed it on aggregate value, restructured it twice, and got it over the line. The client now holds twelve tenanted flats on a single facility with a clean refinance exit."
If the units are too small or the postcode too far, we've heard it before.
Portfolio purchases from £50k to £25m — placed on aggregate value where per-unit minimums fail. Whole-of-market access including lenders who fund tenanted stock, Scottish securities and multi-title completions.
