Refinancing student accommodation

Yes. Owners routinely refinance student accommodation to exit development or bridging debt onto a long-term investment loan, to release equity as the value rises, to secure a better rate, or to consolidate a portfolio. On a stabilised asset, senior lenders typically advance 55 to 65 percent of value.

You can usually release up to the loan-to-value cap, typically 55 to 65 percent of the current value on a stabilised asset, less the existing debt and costs, provided the income comfortably covers the new loan against an interest cover ratio. A risen value or grown rent roll frees up more.

Yes. A bridging loan is designed to be refinanced, usually onto development finance if the scheme is being built, or onto a long-term investment loan once the asset is let and stabilised. We line the refinance exit up when the bridge is arranged.

On a stabilised, income-producing asset, senior lenders typically advance 55 to 65 percent of value, sized to the lower of loan to value and what the income will service against an interest cover ratio. Part-let schemes are financed more conservatively until they stabilise.

Once the scheme is let to stabilised occupancy and the income is proven, usually after one or two academic-year cycles. Before that point, a development or stabilisation facility carries the scheme through lease-up, and the term refinance lands once the letting risk has been removed.