How One Landlord Restructured £5m of Debt with Commercial Finance

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How One Landlord Restructured £5m of Debt with Commercial Finance

Large portfolios can generate significant income – but they also carry significant debt. Managing that debt effectively is crucial to maintaining cash flow and long-term sustainability. This case study shows how one landlord successfully restructured £5m of borrowing using commercial finance, reducing pressure and securing a stronger financial footing.

The Challenge

A landlord owned a portfolio of 25 properties with £5m of outstanding borrowing across multiple lenders. Rising interest rates and fragmented loan expiries were creating cash flow strain. Monthly payments were rising, and the risk of covenant breaches was increasing. The landlord needed a solution that simplified debt management and reduced pressure on liquidity.

The Solution – Portfolio Restructuring

An NACFB broker recommended consolidating the various loans into a single commercial facility. This involved:

• Refinancing all existing loans under one lender with a structured portfolio facility.
• Extending loan terms to reduce monthly repayments and smooth cash flow.
• Negotiating covenants that reflected the portfolio’s overall performance rather than strict per-property stress tests.
• Freeing up equity in selected properties to create a liquidity buffer for future resilience.

The Outcome

The landlord successfully refinanced the £5m debt into a single facility at 65% loan-to-value. Monthly payments fell by 20%, administration was simplified, and a £250,000 cash buffer was released. This improved resilience against rate rises and gave the landlord flexibility to pursue new opportunities.

Lessons Learned

• Think holistically – managing debt across an entire portfolio gives more flexibility than addressing each property in isolation.
• Liquidity buffers matter – releasing equity strategically can protect against future shocks.
• Broker expertise is critical – the NACFB broker’s lender relationships ensured covenants were realistic and commercially workable.

Why This Matters for Landlords

Many landlords still manage debt piecemeal, with multiple lenders and maturities. This creates unnecessary complexity and vulnerability. Portfolio-level refinancing through commercial lenders can reduce costs, improve liquidity, and protect long-term stability.

Conclusion and Takeaway

Commercial finance is not just for new acquisitions – it is a powerful tool for restructuring existing debt. With the right approach, even large and complex portfolios can be refinanced in ways that reduce risk and strengthen resilience.

Next Steps

If you would like to explore restructuring your own borrowing with an NACFB member broker, please complete the short form below and a consultant will be in touch.

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Published: 31 December 2025

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