Rapid refinancing strengthens new relationships

Tough deals can often lead to strong, long-term partnerships. That was certainly the case in a recent student accommodation transaction, where a complex refinance paved the way for a successful collaboration between lender, broker and borrower.

An experienced portfolio landlord was seeking to exit several bridging loans and refinance on to longer-term facilities. The client was introduced to Redwood Bank through a new broker relationship with Unique Property Finance, specialist mortgage brokers in buy-to-let, bridging, commercial and complex lending.

The customer and Unique Property Finance quickly established a strong relationship with Redwood Bank. This collaborative approach resulted in the client drawing a total of £3.7 million of residential investment mortgages with a swift turnaround – a successful outcome for all parties involved.

THE SITUATION

The landlord required refinancing to exit bridging loans and move on to term loans for a portfolio of residential properties converted into student HMOs in Lincoln and Liverpool. Any capital released as part of the refinancing would be reinvested into further property acquisitions.

Over the past nine years, the landlord has built a highly successful business model, acquiring properties at competitive prices, renovating them into high-yielding student HMOs and letting them out. The business operates through several SPVs and manages a portfolio of more than 300 buy-to-let properties, generating significant income.

The landlord benefits from an integrated business structure, employing an in-house team of builders to manage developments and conversions, alongside ownership of an estate agency that oversees the ongoing management and letting of the properties.

THE SOLUTION

Redwood Bank provided total lending of £3.7 million at 75 per cent LTV across a portfolio of properties.

The bank successfully managed multiple applications covering properties in both Lincoln and Liverpool, structured across several SPVs.

In one example, Redwood approved a combination of residential investment and HMO mortgages over 30-year terms, with a five-year fixed rate, interest-only facilities at 75 per cent LTV and a 2 per cent fee.

In another case, Redwood refinanced an existing bridging loan secured against five properties in Lincoln. The new borrowing replaced the more expensive short-term finance and released additional capital, which the landlord used to fund further property investments. A similar refinancing approach was also completed for properties in Liverpool.

Working closely with Unique Property Finance, Redwood demonstrated exceptional speed, completing one refinance in Lincoln from submission to drawdown in just two weeks.

THE EXPERIENCE

Sue Young, Business Development Manager at Redwood Bank, commented: “This is a great example of Redwood supporting an expert property business. As a specialist lender, we were delighted to provide the finance the borrower needed to exit their bridging arrangements.

“One of the most notable aspects of working on these cases was the speed of turnaround for the Lincoln portfolio. When the borrower, broker and lender all understand the process and work collaboratively, deals can progress quickly. Building strong relationships with both the broker and the customer was key to delivering a successful outcome.

“It was a pleasure to support an ambitious and accomplished landlord who, even in a challenging market, has developed a renovation and letting strategy that delivers strong returns. This case highlights how professionalism and entrepreneurialism remain vital in today’s property market.

“We were also delighted to work for the first time with Unique Property Finance and its Director, Beena Budhdeo. They truly demonstrate that a good broker means good clients. We look forward to working together again in the future.”

Beena Budhdeo, Director at Unique Property Finance, said: “As a specialist lender, Redwood understands the demands that portfolio landlords operating at scale are facing. The team understood the client’s structure and objectives and approached the transaction with clarity and commercial insight. Redwood’s ability to move quickly, navigate complexity and deliver a tailored solution ensured a smooth refinance and a positive result for all parties.”