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A landlord with a diverse property portfolio, including a mix of residential investments and commercially let units, required a fast turnaround to refinance an existing bridging facility. The case was particularly complex due to the need for new SPVs, lease extensions across several properties and the requirement to release equity back into the business.
Redwood Bank worked closely with broker Bespoq Finance to deliver a solution that balanced multiple layers of complexity with the need for speed, ensuring the transaction completed in time to avoid expensive penalties.
THE SITUATION
The properties were held under different ownership arrangements and needed to be transferred into new SPVs. One property required a lease extension prior to completion, while three commercial units were let to family members. The entire transaction was time-critical, with penalties looming on the expiring bridge.
The first property was a commercial investment valued at £925,000, comprising three ground-floor commercial units, two of which had flats above. The second property was a semi-commercial investment valued at £330,000 with a six-bed HMO on the upper floors. The final property was valued at £125,000 and contained two ground-floor commercial units operating as a beauty business and a takeaway.
Redwood’s legal counsel, worked closely with the client’s accountants to manage the mechanics of the ownership transfers and confirm that appropriate advice had been provided on capital gains tax and stamp duty land tax.
THE SOLUTION
Despite the overlapping challenges, Redwood approved and completed all three mortgages.
The first loan totalled £627,555 at a 67.84 per cent LTV, structured as a 25-year commercial investment mortgage with a five-year fixed interest rate.
The second property, a residential investment for HMO use, received a loan of £237,150 at a 71.86 per cent LTV on a 30-year interest-only term.
The final property was granted a loan of £78,765 at a 63 per cent LTV with a 25-year commercial investment mortgage.
The loans completed within four months from application to drawdown, allowing the customer to exit the bridging facility in time and avoid additional costs.
THE EXPERIENCE
Jane Hand, Regional Development Manager (North and Midlands) at Redwood, said: “This case reflects the sustained effort required to manage multiple moving parts simultaneously. There were ownership transfers, new SPVs to incorporate, a lease extension to secure and a strict deadline driven by the customer’s expiring bridge. Completing three loans together within four months demonstrates our commitment to delivering at pace, even in complex circumstances.
“Integrity and tenacity were equally as important. The team worked closely with the client’s accountants to ensure tax considerations were properly addressed and our legal team supported the ownership transfers to ensure the customer received clear, responsible guidance throughout. Nothing was rushed, but everything moved forward with purpose.
“Given the complexity, the customer needed certainty. By structuring the deal clearly and keeping momentum, we ensured that issues such as related-party leases and SPV creation did not derail progress. Completing all three loans together gave the customer confidence to move forward with their wider business plans.”
Lucy Hope, Director at Bespoq, said: “This case shows what can be achieved when lender and broker work together at pace. The background was complicated, but Redwood brought their specialist team, streamlined the process and delivered in time to avoid expensive penalties.
“By managing the complexity behind the scenes, the bank made the experience feel straightforward for the customer at a time when they were taking on new responsibilities in the family business. What could have felt overwhelming was instead delivered in an efficient and organised way.”