Arc & Co. arranges £2m in funding across three unusual deals

£1.17m bridging loan for holiday park in Scotland

Sam Beaumont, Asset Finance Advisor at Arc & Co., has arranged a £1.17 million complex bridging loan to help fund the acquisition of a holiday park in Scotland.

The asset type created barriers to financing, in part due to the difficulty valuing the unusual site.

Despite these complexities, Arc & Co. expertly navigated the deal, with the chosen lender’s in-house holiday lodge specialist able to overcome the valuation challenges.

Sam used his expertise to manage a complicated borrowing structure and keep the deal timeline on track.   

The 12-month bridging facility is structured at 1% per month, with an LTV at 90%.

Samuel commented: "This case demonstrates the critical importance of finding lenders with genuine specialist expertise in niche asset classes. The initial valuation challenges highlighted how crucial proper asset understanding is to unlocking appropriate financing.

"By leveraging our lender relationships with sector expertise, we've not only secured the acquisition funding but are now looking to structure a second tranche to help complete phase one of the lodge development—transforming the site into an operation with a bright future."

Refinance of four BTLs with option agreements in place

Sam secured a £500,000 refinance facility across four BTL residential properties with complex option agreements in place.

The landlord sought to refinance just 50% of the existing debt on the portfolio, but, given the option agreements, it proved a lengthy process to find a lender who would support the deal.

Options agreements give current tenants the right to purchase properties on specified dates regardless of freehold ownership. This effectively limits a lender's control over the asset and fewer providers have the appetite to fund these cases.

A key challenge was finding a lender comfortable with this arrangement. Surprisingly, even specialist lenders typically known for handling complex cases declined the deal.

After weeks of thorough tendering, Sam closed the deal with a relatively mainstream BTL provider who took a pragmatic view on the case and the relatively low LTV, and it was completed at a 2-year fixed rate of 5.54%.

"This case required extraordinary persistence. By understanding the market and being unwilling to give up, we managed to partner with a lender who recognised the value of the deal despite its unusual structure.

“We are not strangers to non-standard requirements at Arc & Co. and are pleased to have the necessary relationships and coverage to assist borrowers in a wide range of circumstances.” 

£607k refinance of a self-build BTL project

For this third case, Sam completed a £607,000 buy-to-let refinance facility for a client who had recently completed a self-build residential development project.

The borrower had originally acquired a house with adjacent land, subsequently obtaining planning permission to construct a second property next door.

After successfully reaching practical completion and securing a tenant, they sought to refinance their existing development loan.

The loan was structured at a 5-year fixed rate of 4.74%, releasing enough capital for the borrower to fund their next project.