Case studies · 24-unit BTR scheme, Leeds

24-unit BTR scheme, Leeds

Sold the entire block to a single institutional buyer after 5 months. Repaid early with no ERC. Would have been cheaper to stay on senior + block sale direct, but certainty of execution was worth the premium.

Facility
£7.8m
GDV
£12.2m
LTV
64%
Monthly rate
0.68%
Term (agreed)
18m
Actual hold
—m
Est. all-in cost
£1,071,720
Cost vs facility
13.7%

Outcome

Refinanced early via block sale.

Sold the entire block to a single institutional buyer after 5 months. Repaid early with no ERC. Would have been cheaper to stay on senior + block sale direct, but certainty of execution was worth the premium.

Lesson
If a block-sale exit is plausible within 6 months, dev exit can still be justified by certainty. Agree no early repayment charge at term-sheet stage.

What the numbers show

Over an actual hold of 18 months at 0.68% per month, monthly interest on a £7.8m facility runs to about £53,040 each month. Add a 1.5% arrangement fee of £117,000, and the estimated all-in cost is roughly £1,071,720 — about 13.7% of facility. That excludes valuation, legals, and any extension or step-up costs where applicable.

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