Arc & Co. advises on £3.56m BTL loan for apartment development in Kent

Arc & Co. is pleased to confirm the completion of a £3,562,500 buy-to-let (BTL) loan, secured against 19 newly completed apartments in Kent.

The development, initially conceived as a build-to-sell (BTS) project, successfully pivoted to a build-to-rent (BTR) model after the local council agreed to lease all units under a 5–10-year fixed annual premium agreement, providing the borrower with a stable and predictable income stream.

Key loan info:

• Loan Amount: £3,562,500

• Loan-to-Value (LTV): 70%

• Term: 5 years

The borrower—a UK national originally from outside the country—was seeking a loan against the unencumbered asset to repay investors and release equity for further expansion of their portfolio.

Nikita Nigai, Head of International at Arc & Co. (pictured), originally worked with the borrower in 2022 to support the financing of their first BTL portfolio.

That experience, combined with Arc’s leadership and the international expertise of its team, proved invaluable in navigating this more complex transaction, including access to improved terms.

Nikita encountered challenges with initial prospective banks: higher rates, conservative LTVs, and strict background checks for the first-time developer.

Ultimately, a lending partner was selected on the basis of flexibility and competitive pricing, as well as a willingness to understand the borrower profile and back the project based on the secured council lease.

Commenting on the deal, Nikita said:

“It is vital that we have access to lenders who have the appetite to support complex borrowers and property types, while remaining competitive on price.

“Returning clients feel the benefit of having a specialist adviser in their corner, helping to achieve the best possible terms as they grow and expand.”

“This deal is a great example of how strong lender relationships and market insight can help clients achieve their goals, even in a shifting economic environment

The project, structured under a UK SPV, consists of residential apartments fully leased to the local authority, ensuring legitimacy and secure income from day one.

Arc & Co. continues to actively finance a variety of projects across the UK, leveraging its expertise to deliver bespoke solutions for clients navigating evolving market conditions.