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When a landlord with properties in Enfield wanted to find a competitive and long-term solution to refinance two semi-commercial properties, Jordan Constantini turned to the team at Redwood Bank for support.
What set this deal apart was Redwood’s hands-on approach, with senior members of the team visiting the site in person. This face-to-face engagement helped deepen the understanding of the asset and the landlord’s long-term goals.
Although two of the offices above the shop were still being converted into flats at the application stage, the collaborative and pragmatic efforts between the broker, the client and the Bank’s on-the-ground team ensured the deal moved forward smoothly and successfully. It was agreed the loan would draw down once the flats had been fully completed.
A landlord was looking to refinance to a long-term fixed rate mortgage over a 30-year period on two semi-commercial properties in Enfield worth £4.54m. This refinancing released equity for further investment and provided the landlord with the comfort of a five-year fixed term against a 30-year interest only facility.
Their first property included four flats and a shop and the second consisted of two shops and four flats with two further flats being developed from offices.
Their broker, Jordan, has a longstanding relationship with Redwood Bank and turned to its expert team for assistance.
The Bank’s Head of Business Development (South) Mark Dobson and Head of Underwriting Sarah Johnson met the client and their broker to view the asset and discuss the deal.
Upon learning that two flats were in the process of being developed, the Bank worked proactively with the client to find a practical way forward. It was agreed that a valuation would take place once the development was completed, allowing the properties to be assessed once finished, ensuring the most accurate reflection of their value.
Mark explained that Redwood’s higher fee product would enable the client to boost their affordability and release the capital they needed. The Bank also priced the deal with its residential rates, rather than commercial rates, as most of the income came from the residential buy-to-let properties. This approach helped with affordability and cashflow for the client.
The Bank approved a £3.2m loan (inclusive of a 5 per cent fee) at a 71.4 per cent LTV ratio on a 30-year interest-only term, commencing with a five-year fixed rate. Additionally, the deal qualified for the Green Cashback Reward.
The team at Feldon Dunsmore Solicitors – in particular Mia Kelleher – played a key role in the deal, working closely with Redwood to manage the complexities of the case and help save time and reduce stress.
Redwood Head of Business Development (South) Mark Dobson said: “This was a great example of Redwood enabling a landlord to get the leverage they need to grow – especially in the South-east where property prices are higher and yields lower.
“We used all the tools at our disposal to help the landlord gain the equity they needed. This included offering a five-year fixed rate mortgage with a lower interest rate and higher fee to help boost the landlord’s affordability and price the deal at a residential interest rate rather than a commercial rate due to more than half of the rental income coming from the residential units. In addition, the deal also qualified for a Green Cashback Reward.”
Head of Underwriting Sarah Johnson added: “We individually underwrite every case and – in this instance – we also met with our borrower and their broker on site to fully appreciate the asset and understand the context of their business and ongoing finance needs.”
Paul Harrison, a partner at Feldon Dunsmore, said: “It was a pleasure working alongside Redwood Bank, especially Hannah Varley in their Credit Operations team on this deal. Their pragmatic approach, clear communication and willingness to understand the borrower’s needs made a real difference in navigating the complexities and ensuring a smooth and successful transaction.”