Tuscan Capital secures £150m for short-term BTL funding

Over the past year, the lender has provided short-term loans for portfolio deals worth £750,000 to £9m across BTL, houses of multiple occupancy (HMO), commercial, and mixed-use classes. Bridging loans were typically for six to 12 months.

With the new facility and its existing funding lines, Tuscan says it can now fund buy-to-let portfolios up to £30m.

The lender said it has seen a significant number of professional landlords requiring funding over the past year. These often involve opportunities where landlords are given portfolios for sale from receivers, as well as ownership restructures where landlords may be transferring assets from personal ownership to special purchase vehicles or offshore structures.

Landlords have also been looking to refinance or capital raise where they may need to repay existing investors or invest capital for refurbishment or maintenance of the portfolio, according to the lender.

Tuscan says the product exit will usually come in the form of a high street or ‘challenger’ bank’s term facility once the portfolio has stabilised its revenue or the refurbishment and restructure is complete.

Colin Sanders (pictured), CEO at Tuscan Capital, said: “Our new funding line demonstrates that we have both the appetite and capacity to service the needs of landlords with portfolio cases. Our proposition is very much about enabling the landlord to get from A to B where term lenders cannot.

“Our underwriting team are experts in assessing the risks in a portfolio and take a holistic view of the deal. They, together with our lawyer partners’ commercial and pragmatic approach, has helped us close out some of the most complex transactions which are also often extremely time sensitive.

“This significant additional funding line means Tuscan now has all short-term property funding bases covered.”