loan renewal
Continuing with the existing lender is convenient and quick, but only appropriate if the terms are competitive. We provide that market comparison.
Service · Refinancing
Property Refinancing: Renewals and Replacing Existing Loans
An expiring fixed-rate period, a higher property value or a changed strategy can provide an opportunity to reorganise financing and liquidity. Alternate Capital structures follow-on finance, lender changes and wider restructuring from €750,000, independently of individual banks and with your objectives in view.
Reasons to refinance
When refinancing is needed and why it deserves attention
Refinancing is often approached late: the existing bank sends a renewal offer, the deadline approaches and the borrower accepts quickly. Opportunities can then be missed for better margins, suitable leverage and greater strategic flexibility.
Common triggers include the end of a fixed-rate period, project loans reaching maturity, higher property values after re-letting or refurbishment, a wish to Releasing capital for new investments, or a lender withdrawing from the asset class.
- Pricing: An expiring fixed-rate period creates an opportunity to review the margin and structure.
- Strategy: Holding, selling or increasing the investment: finance should support the strategy.
- Liquidity: Release available property equity without selling.
Options
Renewal, refinancing or restructuring: three approaches
remortgage
Changing lenders may improve the margin, term or leverage. The cost of assigning a land charge and obtaining a valuation can be recovered through financing savings.
Restructuring
Combine or separate portfolio facilities, reorganise tranches and integrate subordinated capital as part of the refinancing: particularly relevant where your strategy or portfolio has changed.
Timetable
An 18-month timetable for follow-on finance
Months 18–12
Review the current position
Loan balances, repayment provisions, property information and leases: we establish the refinancing profile and objectives.
Months 12–9
Explore the market
Obtain indicative terms from suitable lenders, using anonymised information where appropriate to protect the existing relationship.
Months 9–4
Offers and negotiation
Compare term sheets and negotiate with the existing bank. Competing offers can strengthen the position when renewing the loan.
Months 4–0
Implementation
Agreements, assignment of the land charge and repayment of the existing loan on the agreed date, with no avoidable commitment interest or gap in debt servicing.
A shorter timetable may also be possible: If the fixed-rate period ends within a few months, we can condense the process, where necessary using Bridge finance for an interim period.
Releasing capital
Refinance and release capital without selling
A higher property value, re-letting, refurbishment or principal repayments may create unused borrowing capacity. Refinancing can release this capacity where the new loan exceeds the existing balance. The difference provides available liquidity for acquisitions, capital expenditure or equity in the next project.
The realistic amount depends on the current Mortgage lending value, debt servicing capacity and the lender’s policy. Our page explains further options, including subordinated structures: Additional borrowing.
If refinancing is to support further acquisitions, learn how we Plan financing and portfolio growth together.
| Example calculation | Value |
|---|---|
| Current property value | €8.0 million |
| Outstanding loan | €3.6 million |
| New loan at 65% LTV | €5.2 million |
| Liquidity released | Approximately €1.6 million |
Simplified example excluding costs and taxes. No financing commitment; the result depends on the assessment and lender.
Media
Refinancing podcasts and videos
Podcast
Property refinancing
Loan renewal, refinancing or restructuring? A step-by-step timetable for portfolio owners.
Original recording in German.
All episodes in the Podcast hub
Original recording in German.
Frequently asked questions
Refinancing: quick answers
Can switching lenders be worthwhile despite assignment costs?
Often yes. Assigning an existing land charge costs less than creating a new one. For larger loans, a margin improvement of 20–30 basis points may recover the costs relatively quickly. We calculate the break-even point.
What happens if a bullet loan matures without follow-on finance?
Late preparation can create time pressure and weaken your negotiating position. Earlier involvement leaves more options, from replacing the existing loan to arranging interim finance.
Do you also refinance portfolios?
Yes. We can assess a combined facility with one lender or separate facilities with several. The appropriate approach depends on costs and the portfolio strategy.
Is additional borrowing part of refinancing?
It can be. Refinancing reorganises the overall lending structure, while Additional borrowing specifically releases available borrowing capacity and can also take place independently of the end of a fixed-rate period.
From practice
Costly mistakes in property refinancing
Refinancing can affect a property’s profitability for the next five to ten years, yet is often treated as routine administration. In our experience, avoidable mistakes can cost investors substantial amounts.
First: starting too late. Waiting until the renewal offer arrives leaves little time to negotiate. Without competing terms, borrowers have fewer alternatives. Second: focusing only on interest. The nominal rate is only one component. Principal repayments, commitment interest, early repayment provisions and covenants also affect cost and flexibility. Third: overlooking available borrowing capacity. Refinancing only the outstanding balance may miss an opportunity to use increased property value for additional funding.
Fourth: staying with the existing bank purely for convenience. Existing borrowers do not always receive the most competitive terms. Changing lenders involves work, which can discourage comparison. We handle that comparison, make offers consistent and negotiate with the existing bank using credible alternatives.
A fifth common mistake is to consider follow-on financing in isolation from the overall portfolio. Owners of several properties should stagger fixed-rate periods and align each refinancing with their wider strategy, for example by using available security for another acquisition. This turns a necessary refinancing into part of active portfolio management.
Next step
Prepare follow-on finance in good time
Send details of the property, outstanding balance and fixed-rate expiry. We will assess realistic terms and financing capacity.
About the author
Jürgen Kronawitter
Jürgen Kronawitter specialises in structured real estate finance. He helps property investors, developers and portfolio owners implement complex financing solutions. His work focuses on structuring and arranging senior loans, whole loans, mezzanine capital and bridge loans, as well as tailored financing for acquisitions, investment properties, developments and refinancing. By combining conventional bank lending with alternative capital sources, he develops financing structures for domestic and international property projects.
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