7-Unit Residential Portfolio Purchase via Share Option Agreement
The situation
A portfolio landlord approached Expert Finance to raise funding buy the shared in a 7-unit residential portfolio owned within a single SPV.
The properties were all let on standard ASTs and generating a combined rental income of approximately £3,505 per month.
The true market valuation of the existing portfolio was agreed at £500,000. Following independent review, the portfolio was valued at £476,500.
The client required clarity on how this translated into borrowing, and how the portfolio would be assessed by lenders. A share purchase agreement was negotiated at £400,000.
The approach
The starting point was aligning the case with how lenders view portfolios of this size.
The funding was structured to reflect:
• the portfolio value of £476,500
• the rental income across the 7 units
• lender appetite for smaller portfolios
• a straightforward valuation approach aligned to the transaction
This provided a clear and realistic lending position without adding unnecessary complexity to the process.
The outcome
A deliverable funding position was established at refinancing the portfolio for £347,000 or 75% loan to value.
The client was able to move forward with a clear understanding of what could be achieved, and how the portfolio would be supported within current lending criteria.
By keeping the structure aligned to lender expectations, the process moved forward efficiently and with clarity.
A share purchase agreement was negtiated where the client bought into the SPV for a combined £400,000 value, meaning the cleitns contribution was £53,000 on a portfolio purchase ultimately valued at a market value of £500,000