Why refinance in two steps?
Investment lenders want trading history. Straight after practical completion a scheme has a first-year occupancy figure but no settled operating costs, so term lenders lend less or not at all. A stabilisation facility bridges that first year, then investment debt refinances it on the stabilised figures. See PBSA stabilisation finance and PBSA refinance.
Questions
How long does PBSA stabilisation take?
Usually one full academic year of lettings, sometimes two for a scheme that opened late or in a new location. Lenders look for occupancy at or near the level assumed in the valuation.
Written and reviewed by Matt Lenzie, Founder and principal. Last reviewed .