Growing a property portfolio isn’t always about finding the next great deal, sometimes it’s about finding the smartest way to fund it. This case study shows how a limited company property investor expanded his buy-to-let portfolio, avoided early repayment charges, and created a repeatable strategy for long-term growth.
Our client was an experienced property investor with seven buy-to-let properties, all held within a limited company. He was an existing Private Finance client and had built his portfolio carefully over time using competitive fixed-rate mortgages.
An opportunity arose when the property next door to one of his rentals came onto the market. The investor knew the vendor well, understood the local rental demand, and could clearly see the upside. The catch? He didn’t have all of the deposit funds immediately available, and the property required refurbishment before it could be let.
Like many landlords right now, most of his mortgages were still within fixed-rate periods. Remortgaging to release capital would have triggered significant early repayment charges (ERCs), making a traditional equity release for their buy-to-let strategy both expensive and inefficient.
The main obstacle was funding. He didn’t have all of the deposit readily available, and the property required refurbishment works before it could be let. Normally, the conversation would turn to releasing equity from the existing portfolio. But most of the investor’s existing buy-to-let mortgages were still within fixed-rate periods, some running until the end of the year and beyond.
The investor needed a solution that:
Rather than remortgaging, we arranged further advances on two of his existing buy-to-let properties with the same lender. This allowed him to release equity for buy-to-let purposes without incurring early repayment charges.
To fund the purchase and works, we used the lender’s bridge-to-let product instead of a standard bridging loan. This provided a six-month facility specifically designed for refurbishment projects, with the works expected to take just two to three months.
This approach kept costs down, avoided ERCs, and aligned perfectly with the investor’s longer-term strategy.
The refinance was planned from the outset. The investor already had a mortgage offer in place for the end of the six-month period, giving him complete confidence in the exit.
Once the refurbishment is complete, the property will be refinanced onto a standard buy-to-let mortgage, releasing capital that can be recycled into future purchases. This certainty can often be missing when investors rush into short-term funding without a clear plan.
This transaction wasn’t just about one property. It formed part of a broader strategy for how to build a buy to let portfolio while also navigating fixed-rate mortgages that end at different times.
The longer-term plan is to repeat this process using two additional properties within the existing portfolio. By selectively unlocking equity and avoiding unnecessary fees, the investor could then grow their existing portfolio from seven to ten properties over the next couple of years.
For landlords managing multiple assets, this kind of structured approach to Portfolio Buy to Let lending can be the difference between stalled growth and sustainable expansion.
If you’re a limited company landlord with properties locked into fixed rates, growing a property portfolio doesn’t have to mean waiting for your deals to end or relying solely on cash savings to fund deposits.
With the right advice, it could be possible to release equity, fund refurbishments, and buy additional buy-to-lets using lender-specific solutions that are designed for experienced investors.
If this scenario resonates with you or you’re seeking personalised mortgage advice for another situation, please get in touch — we’d be happy to see how we can help.
Call our team today on 0800 652 0971 or email info@privatefinance.co.uk.
Disclaimer:
The information presented in our case studies is intended for illustrative and marketing purposes only. Some case studies may be based on multiple enquiries or hypothetical scenarios to demonstrate typical processes or outcomes. Not all case studies represent completed business transactions, and the inclusion of a case study does not imply that the business was successfully concluded. Please be aware that Private Finance is not a tax advisor, and this page does not constitute tax advice. The Financial Conduct Authority does not regulate commercial finance and some forms of buy-to-let mortgages.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
