An investor got in touch with their broker for help in refinancing a block of 15 units. The block was made up of 10 residential flats and five retails units, one of which was a launderette. The client needed a £1 million loan at 65% LTV on a 10-year term with a 5-year fixed facility.
The broker contacted InterBay who told them the launderette would normally make the deal fall outside of policy, but that they would be happy to investigate the case further. The launderette would usually be viewed as high risk due to the use of chemicals however the cleaning requiring chemical use was being carried out offsite.
Upon investigation, InterBay’s underwriting and real estate teams decided that as the launderette was the last on the block and its cleaning was being done offsite, it wouldn’t present a risk to the other 14 properties. InterBay saw the potential strength of the application and found a way to make sure the smallest property on the block of 15 units didn’t bring down the whole case.
As the case including the launderette wouldn’t have met InterBay’s standard criteria, it was done under an exception policy. The other 14 units were fine and real estate were satisfied that the value of the property was sound and could be converted in the future. InterBay was able to offer the client the refinance deal they needed.
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Joshua.williams@osb.co.uk
