Additional facility will support buy-to-let portfolio cases
Property finance specialist Tuscan Capital has announced that it has secured new funding for buy-to-let portfolio landlords looking to secure short-term funding.
The additional facility provides Tuscan with £150 million to specifically support selected buy-to-let portfolio cases.
Over the past 12 months, Tuscan has provided short-term financial solutions for portfolio deals from £750,000 to £9 million across the UK, ranging from straightforward buy-to-let properties to HMO, commercial, and mixed-use property classes. These bridging loans were typically for six and 12 months.
With the new facility, coupled with its existing funding lines, Tuscan Capital can now fund buy-to-let portfolios up to £30 million.
The lender has seen a significant number of professional landlords requiring funding to assist with their portfolio strategies over the past year. These have frequently involved opportunistic purchases where landlords are presented with portfolios for sale from receivers, as well as ownership restructures where landlords may be transferring assets from personal ownership to SPVs or offshore structures.
Landlords have also been looking to refinance and/or capital raise where they may need to repay existing investors and/or invest capital for refurbishment or maintenance of the portfolio.
Tuscan Capital said the product exit will usually come in the form of a High Street or ‘challenger’ bank’s term facility once the portfolio has stabilised its revenue or the refurb/restructure is complete.
Colin Sanders, chief executive at Tuscan Capital, said that their new funding line demonstrates that Tuscan has both the appetite and capacity to service the needs of landlords with portfolio cases.
“Our proposition is very much about enabling the landlord to get from A to B where term lenders cannot. This significant additional funding line means Tuscan Capital now has all short-term property funding bases covered,” Sanders said.
