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An experienced landlord’s business plans were under threat until his broker approached Redwood Bank, knowing it would be flexible on maximum lending ages.
Redwood looks at each case independently and makes common-sense decisions based on individual circumstances, helping customers make their dreams a reality. When Chris Thomas of FC Funding explained to BDM Ian Tudor the problems his London customer was having, the right solution was found.
The experienced landlord hit a snag when trying to refinance one of his properties – because of his age.
He has a semi-commercial property in London. The three flats and one commercial unit was valued at £1,295,000. A terraced building, it is ideally situated for Kentish Town tube and overground station.
His aim was to remortgage after a refurbishment, but his existing lender turned him down as he would be 97 at the end of the 25-year term. On the face it, that seemed like a reasonable decision, but what the lender did not take into account was the landlord’s succession planning.
He was keen to make his son a 50 per cent shareholder and director of his business … and there were no problems with his age.
Having drawn a blank with the then provider, the broker, a new intermediary for Redwood, approached Ian, knowing that the Bank is always keen to find an answer for customers.
Redwood’s usual maximum borrowing age at end of term is 75, but that can be extended if circumstances merit. And in this case, it was straightforward with the son becoming a shareholder and director. With manual underwriting, Ian was able to understand the situation and make an informed decision, based on common sense.
Redwood was able to provide a loan of £561,000 (LTV 43 per cent) on a five-year fixed deal over 25 years on capital and interest repayment terms, allowing the development finance to be repaid, while also letting the landlord progress with his plan of making his son a director.
BDM Ian Tudor said: “The introduction came from a broker who I have known for many years.
“This was the first deal we were able to complete with them. They approached me as they were aware the landlord was in his seventies and didn’t know if we would be able to assist, although they had said his son was more involved in the business and for succession planning would becoming a director and shareholder of the limited company. We were delighted we were able to support this request, providing a longer-term finance option which has saved the family money as were we able to provide a better rate than the existing lender.”
Ian’s colleague James Egerton added: “I was delighted to be able to support Ian in writing this deal. It was great to know that we were supporting a new-to-bank broker as well as a customer many banks may not look to lend against when looking at his age. We wish them all the best going forward.”
Chris Thomas said: “Working with our Ian and James to get the deal approved was a truly positive experience. Once the deal was approved, we liaised with Geoff Robinson in the Credit Operations Department and their feedback was always forthcoming, and their dedication to ensuring the success of the deal was evident at every stage. We look forward to future collaborations with Redwood Bank.”