A property investor contacted their broker about securing a remortgage deal to pay off a developer loan on 28 units above a retail parade in Hertfordshire. The client needed a loan of £4.575 million to be made to a limited company which is a wholly-owned subsidiary of their development company. They were struggling to secure finance as many lenders don’t consider loans on properties above units, or loans to layered limited companies.
The broker contacted a member of our specialist finance account manager (SFAM) team for support and the two of them worked closely together to get the deal through as smoothly as possible. As the deal was worth more than £3 million, the SFAM presented the application to our Transactional Credit Committee (TCC), which is made up of senior people from across the business. The TCC agreed to the case, giving the broker and their client confidence we would support the deal before any money was committed to valuations.
Despite the complexity of the deal, we were able to provide finance at 75% LTV, fixed at 4.99% for five years. We based our decision on the aggregate value of the individual units, rather than a block valuation, as they were in a desirable location with excellent demand for both rental and owner occupation. We were able to lend against 25 units, with the remaining three units allocated for social housing, demonstrating our partnership approach to achieving that all-important positive broker and client outcome.
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