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When an investor needed to release capital to invest in their growing business and to support the purchase and transfer of property in their personal name to a limited company their broker, Propp, knew exactly where to turn for help.
Having built a strong relationship with Ian Tudor and the lending team at Redwood Bank, the team at Propp had confidence in the Bank’s specialist knowledge to help their client secure a loan against four properties which would support their ambition to grow further in the assisted living sector.
An experienced property investor wanted to secure a buy-to-let mortgage against four HMO properties valued at £2,055,000. These are tenanted by a supported housing company providing housing to people with learning difficulties, mental health issues, autism and other health and social care-related needs.
The investor needed a deal which would support releasing equity from two of the HMOs to form a deposit to enable the purchase and transfer of the other two HMOs from being owned under the customer’s personal name into a limited company.
The investor’s broker, Propp, has a strong relationship with Ian Tudor, Business Development Manager (BDM) and the wider Redwood team.
The Bank approved a £1,306,800 loan at a 64 per cent LTV ratio on a 19-year interest-only term, commencing with a five-year fixed rate at 6.49%.
BDM Ian Tudor, who has an excellent relationship with the broker, said: “It was so good to be able to assist an experienced investor, introduced by a reputable broker, for the purpose of helping the care sector.”
BDO James Egerton added: “The broker was extremely helpful and skilful in packaging the information we needed to make the underwriting process as streamlined as possible. It was a delight working with the team at Propp and we look forward to completing more business with them in the future.”
Paul Elliott, of Propp, the UK's first specialist finance comparison site said: “This facility has allowed my client to secure competitive pricing on a high-yielding portion of their portfolio and created the ability to plan strategically for further growth in the assisted living sector over the coming years. In their own words, ‘there is a real need for this sort of housing’ so it's really satisfying to work with a lender like Redwood that understands the value the sector is providing to our society.
“What impressed me most was the flexibility Redwood showed throughout the process. There were some challenges along the way, but the team at Redwood approached each issue with a ‘can do’ attitude that is sometimes lost in the mainstream buy-to-let space with so much focus on automated decisions and standard, inflexible loan conditions.
“Moreover, the client appreciated having an opportunity to meet their proposed lender face-to-face – albeit virtually – to talk about their business, their plans and how Redwood could support them as their commitment to providing assisted living accommodation grows. It was also a great opportunity to iron out some of the finer details quickly and concisely prior to the loan drawdown rather than going back and forth with emails which was important given we were getting close to deadline day.
“Thanks to Ian and the team for supporting this transaction and we look forward to working together again in the future.”