🏢 Case Study: Whole Portfolio Incorporation
🚧 Key Financial Challenge:
Problem
📌 Client Profile:
John initially needed to refinance five properties immediately but had a long-term objective of consolidating his entire portfolio under a more tax-efficient structure. His long term goal was to incorporate his portfolio from a Partnership to a Limited Company using [Section 162 Incorporation Relief]. Traditionally, this would form a two-stage move, as the change of legal ownership would require a new mortgage.
Solution
✅ Leveraging our strong relationships with specialist lenders, we engaged in detailed discussions with a well-known specialist bank, including their head of credit, to design a financing strategy that aligned with John’s goals. 💰 Strategic Financial Gains:
- Successfully refinanced the entire property portfolio under a single loan facility, simplifying financial management • Negotiated a capital raise opportunity, unlocking over £500,000 for further investments • Structured the application to allow for a seamless transition from Partnership to Limited Company ownership, avoiding costly revaluations and arrangement fees 📝 Innovative Lending Structure:
✅ By securing credit approval for both Partnership and Limited Company ownership at the application stage, we eliminated the need for new valuations (£22k) and a new arrangement fee (£60k) when John incorporated his business six months later. This innovative structure ensured minimal costs and maximum flexibility. This allowed the client to fully incorporate his client 6 months later, without paying for new valuations (£22k) and a new arrangement fee of (£60k). The clients only costs for this were a small administration fee to the lender to cover the cost of issuing the new facility letters in the limited company name.
Outcome
- Simplified portfolio financing with a single 5-year fixed loan, improving cash flow management • Released over £500,000 in capital for new investments • Reduced annual interest costs by over £80,000, even after the capital raise • Seamlessly incorporated his property business without additional refinancing costs He released over £500,000 for further investment, and was able to incorporate his property business without any further cost at the later stage. 📢 If you’re an investor with a complex property portfolio, we can help you consolidate, refinance, and optimize your financial structure. Contact us today to explore tailored solutions that maximize efficiency and long-term profitability.
