The portfolio is secured against properties distributed across 101 developments concentrated in the south of England, while most of the loans were originated between 2008 and 2013.
Shared equity mortgages are loans from housebuilders to new home buyers secured through a second charge on the property, with the redemption amount linked to appreciation in the market value of the property.
The portfolio will be managed by second charge mortgage lender Optimum Credit Limited.
Keith Breslauer, managing director of Patron Capital, said: “Shared equity mortgages were popular during the window of limited mortgage lending from the banks post-recession; now, as housebuilders increasingly focus their balance sheets on pure development, we see a significant opportunity to acquire and manage these loans via our Optimum Credit platform, and this deal represents an excellent potential return.”
Greg Fitzgerald, executive chairman of Galliford Try, said: “We are delighted to have worked with Patron Capital to conclude the sale of our shared equity portfolio, freeing cash to be invested in our development business and removing an unnecessary administrative burden.”
