£4.24m residential investment loan completes in just 2 months06 February 2018
December 2017 saw Shawbrook’s Commercial Property team complete a complex Limited Company transaction against 3 blocks of flats on one title in Gillingham. The developer was looking to refinance an existing development lender and capital raise for further property development. Given the loan size of £4.24m, the case was discussed by the Shawbrook Lending and Group Credit team who saw the strength of the deal and swiftly gave approval subject to valuation, allowing the customer to proceed immediately without incurring any initial valuation or legal costs.
The Shawbrook credit team met with the customer to ensure all requirements were being satisfied, bringing a personal element to the transaction, and we were able to move to completion just 2 months after receipt of the valuation.
Mark Flower from Stratford Corporate Finance commented: “A valuable long term client - a developer and investor - approached us to refinance 38 flats that they had developed in recent years. However, the title had not been split and all 38 were on one freehold. Given the costs of the refinance the clients were looking to maximise their gearing to 75% LTV. Shawbrook were excellent. They accepted that whilst this was a fairly heavy concentration, the fact that the 38 flats were split across 3 blocks that were of excellent quality enabled them to take a practical view. They also agreed to lend against the block freehold values, rather than market investment and we could raise £4.2m for the client on a 10-year interest-only deal. Looking at this from both a broker and customer perspective, we were very impressed with Shawbrook. Thank you!”
Shawbrook Senior Development Manager, Gavin Seaholme commented; “Our traditionally flexible approach to the client and the security, along with a strong working relationship with Stratford Corporate Finance, meant that we were able to communicate easily, openly and often. This complex loan was a real challenge but that’s exactly the kind of transaction Shawbrook is used to tackling. It is always a real privilege to deliver for our brokers and their clients and we were delighted that all parties were satisfied with the outcome”.