Bridging Loan Case Study | 100% Purchase Price BMV Residential Portfolio | Positive Commercial Finance

Case Study: 100% Purchase Price Bridging Finance for Investment Property Portfolio

Background

An established client of Positive Commercial Finance secured the opportunity to purchase an entire residential investment portfolio in the North East of England from a retiring landlord. The seller wanted a single buyer for the full portfolio, creating a time-sensitive opportunity.

Our client negotiated a strong below market value (BMV) purchase price, well below the open market valuation. The portfolio consisted of a well-diversified mix of houses and flats – all good-quality, established rental properties with solid comparable sales evidence in the local area. The properties were geographically spread, eliminating any concentration risk for lenders and allowing valuation on an aggregate portfolio basis.

With a purchase price of £1,500,000 and a client-expected aggregate valuation of £2,150,000, this presented an excellent case for a below market value bridging loan to maximise leverage and complete the acquisition quickly.

The Solution

Positive Commercial Finance sourced competitive quotes from specialist BMV bridging lenders experienced in portfolio acquisitions. We secured a 75% Loan-to-Value (LTV) bridging facility, delivering a gross loan of £1,612,500.

Key features of the deal included:

• 100% of the purchase price funded after the lender’s arrangement fee (net loan = £1,500,000)
• Interest serviced monthly from the portfolio’s existing rental income
• Competitive rate of 0.85% per calendar month
• No exit fees (subject to a 3-month minimum term)
• Mix of Automated Valuation Models (AVMs) and desktop valuations to keep fees to a minimum
• Purchase structured as a share purchase of the existing SPV – saving the client significant Stamp Duty Land Tax (SDLT) liability

This structure allowed the client to acquire the full portfolio rapidly while preserving cash flow and avoiding personal or corporate SDLT exposure on individual properties.

The Result

The client successfully acquired the entire £1.5 million residential investment portfolio using bridging finance tailored to a below-market-value opportunity. The deal provided immediate access to £2.15m in asset value with full rental income support from day one.

The client now plans to refinance onto a long-term commercial mortgage after six months of ownership, opening up access to a wider range of lenders and lower long-term rates.

Positive Commercial Finance delivered a fast, efficient, and highly leveraged solution that met the client’s goals perfectly.