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A Birmingham property investor with a growing portfolio of specialist accommodation has refinanced three properties with Redwood Bank, helping unlock funding for further expansion of homes supporting vulnerable young people.
Mohammed Yousaf, director of Serenity Consultancy (UK) Ltd, has spent more than a decade building a property portfolio alongside businesses delivering supported accommodation and residential care services.
What began as a property investment strategy has developed into a long-term mission to improve housing standards for vulnerable individuals and young people.
Mohammed began his career in the charity sector, supporting adults with mental health needs. Through this experience, he saw first-hand the significant impact that safe, stable and well-maintained accommodation can have on people rebuilding their lives.
He said: “Many young people entering care or supported accommodation have experienced extremely challenging circumstances. The environment they live in can have a profound impact on their confidence, wellbeing and future prospects.
“Providing safe, high-quality homes with the right level of support can genuinely change someone’s life trajectory.”
Today his organisations operate eight children’s care homes across the West Midlands and employ around 90 staff. His long-term ambition is to expand nationally and create a pathway of support for vulnerable young people as they transition from residential care into supported accommodation and independent living.
However, scaling these services requires access to funding partners that understand both the property and operational elements of the sector.
Unlocking growth
To support the next stage of expansion, Mohammed approached commercial finance broker David Sampson at Omega Commercial Solutions Ltd to refinance three properties within his portfolio.
The refinance consolidated borrowing from a high street bank and another specialist lender into a single residential investment facility, while releasing equity to fund further acquisitions and property improvements.
The three properties – two domiciliary children’s care homes and a five-bedroom HMO – have a combined value of £1.13m.
Redwood Bank provided a £847,500 loan at 75 per cent LTV on a five-year fixed residential investment mortgage with a 30-year interest-only term.
From full approval to drawdown, the deal completed in just three weeks, enabling Mohammed to move quickly as he evaluates further opportunities to expand his accommodation portfolio.
Looking beyond the paperwork
Despite Mohammed’s extensive experience and established track record, the refinance had previously been declined by two lenders due to the complexities often associated with supported housing lease structures.
Rather than applying a standardised approach, Redwood took time to understand the structure of the portfolio, the operational businesses involved and the long-term strategy behind the properties.
Mohammed said: “Redwood took the time to understand the bigger picture. They looked beyond the paperwork and recognised both the track record and the purpose behind the portfolio.
“Their approach made a real difference in allowing the deal to move forward.”
By applying manual underwriting and working collaboratively with the broker, Redwood was able to assess the case in detail and progress the transaction efficiently.
Supporting a bigger purpose
For Mohammed, the refinance represents more than a property transaction. The equity released will be reinvested into additional homes designed to support vulnerable young people.
“Our aim is to increase the number of homes we operate while continuing to raise the standard of accommodation available.
Access to funding plays a critical role in making that possible. Having a lender that understands the sector and supports our long-term vision makes a huge difference.”
Reflecting on the experience, Mohammed described the process with Redwood as one of the most positive he has encountered in his career.
“Redwood were fantastic throughout the process. The solicitors they appointed were knowledgeable and worked extremely efficiently. After many years of working with lenders and solicitors, this was genuinely one of the best experiences I’ve had. It gives me confidence to consider refinancing more of my portfolio in the future.”
A collaborative approach
The transaction was introduced by Omega Commercial Solutions Ltd, which worked closely with Redwood throughout the process. David Sampson, Director at Omega, said: “This was a complex portfolio refinance with several moving parts, but Redwood were straightforward to work with throughout. Their team took time to understand the borrower’s experience and the nature of the properties rather than relying on a tick-box approach.”
Mark Dobson, Head of Business Development (South) at Redwood Bank, added: “This deal shows how Redwood works with brokers and customers to support experienced landlords with clear growth plans. Our decision-in-principle process allowed us to give early certainty that we could support the case, and once approved we were able to move quickly to completion.”
With equity now released and further opportunities under review, Mohammed continues to expand both his property portfolio and the services it enables.
“Our long-term goal is simple – to provide more high-quality homes for young people who need stability, support and opportunity. Working with partners who understand that vision makes all the difference.”