PORTFOLIO BUILDING SERVICE | Commercial Property Investor diversifying into Residential Housing

Background

We have been collaborating closely with an investment company to double their residential property portfolio.

Currently, the company owns a commercial property portfolio managed by our Commercial Property Management Team [link to commercial property management section of our website]. However, the commercial property sector has faced structural changes due to the Covid-19 pandemic, with a year-on-year decline in demand, particularly for office spaces. Retail and warehousing sectors have also been negatively impacted.

Recognizing the opportunity, our client has decided to leverage our Portfolio Building Service alongside our Residential Let it & Forget it service. This combination offers:

Key Benefits:

Numerous Investment Opportunities

Residential properties are more abundant on the market compared to commercial ones, providing more frequent investment opportunities.

Lower Capital Requirements

Commercial properties require significant capital investment due to low loan-to-value (LTV) ratios offered by banks and high acquisition costs. Conversely, residential properties can be acquired for as little as £100,000.  LTV ratios for residential properties are also more favourable (75% and upwards), meaning a £100,000 property only requires a £25,000 deposit, with the remainder funded through a Buy-To-Let (BTL) mortgage.

Scalability

The combination of low acquisition costs, high LTVs, and a plentiful supply of residential properties presents investors with the unique opportunity to scale their property investments from a single unit to multiple properties in a relatively short period of time.

Our Solution

We are assisting this client by:

Identifying Investment Hotspots

We are shortlisting locations across England that offer the maximum return on investment by focusing on areas with the lowest property acquisition costs and the highest rental returns.

Let it & Forget it

We are securing central government-guaranteed rent contracts through our Let it & Forget it service, ensuring stable and predictable income streams.

Mortgage Funding

We arrange competitive mortgage terms through our network of brokers and direct relationships with UK high street banks such as Lloyds, NatWest, Barclays, Metro Bank, Yorkshire Building Society, and Santander, as well as private banks like Coutts, Investec, and Handelsbanken.

Ongoing Support

We handle everything from arranging building insurance to the maintenance and management of these assets, providing a hands-off investment strategy akin to commercial property management.

Don’t Delay, Get Started Today

This approach has created a scalable, hands-off investment strategy for our client, akin to commercial property investments. Whether you have £100,000 or £10 million, get in touch with our portfolio building team to discuss your requirements.