Financing the purchase and renovation of 98 apartments

Fleet Mortgages worked with a broker to help a customer to finance the purchase and renovation of 98 apartments, and benefit from a lower interest rate as assets were sold and the LTV was reduced.


The 98 apartments were within a large block in an up-and-coming area of Liverpool. The properties were purchased through an SPV for a combined cost of £13.6m.

The client planned to increase the capital and rental value of the investment by updating the communal areas and carrying out basic improvements to some of the apartments, with the intention of selling approximately 60 units over a three-year period.


Fleet Mortgages advanced 65% LTV (£8.5m) on day one, with interest roll-up on 50% of the loan for the first 12 months. This meant that income could be used to fund the improvement works and cover rental voids while units were being sold.

The loan was advanced on a three-year term at an initial fixed rate of 7.49%. It carried a covenant that, should the LTV fall below 50%, the rate would reduce to 6.99%.

In addition, up to 25% of the principal amount could be repaid each year without incurring an Early Repayment Charge. This penalty free repayment amount could accrue over the life of the facility, meaning that if no capital repayments were made in year one, the 25% carried over to year two, enabling up to 50% of the principle amount to be repaid without penalty, and so on.

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