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Landlords can face complex challenges when transferring residential investment properties from personal ownership into a limited company.
For one experienced portfolio landlord – who owns 24 buy-to-let properties, most already held within a limited company – ongoing restructuring was essential to support their ambition to expand within the social care sector.
Having previously worked with their broker, Propp Limited, and Redwood Bank, the landlord returned to secure three further loans for HMOs on long-term leases to care providers.
This transaction marks the second collaboration between Propp and Redwood in 2025, following an earlier loan secured against four properties. Both deals enabled growth in the assisted living sector and further strengthened Propp’s relationship with BDM Ian Tudor and the lending team at Redwood Bank, reinforcing confidence in the Bank’s specialist expertise and responsive service.
THE SITUATION
The client sought three loans for three small HMOs in Guildford, each comprising four to six bedrooms and let to a care provider on a long-term lease. The residents include individuals with learning disabilities, mental health conditions and other social care needs.
The landlord intended to purchase two new properties and release equity from a third to support further portfolio investment. The first property was valued at £425,000 and comprised a four-bed HMO that would be transferred from the landlord’s personal name into their SPV. The second property, valued at £475,000, was a five-bed HMO that would also be moved into the SPV.
The third property, valued at £800,000, involved refinancing existing debt of £306,000 held with a different bank, while also releasing £247,900 of equity for onward investment, with fees totalling £12,000.
The client’s business is a family-owned company incorporated over 10 years ago to hold buy-to-let assets. With around 30 years’ experience in the property sector and existing loans with Redwood totalling £1.3 million, the client is a highly credible and experienced borrower.
THE SOLUTION
Redwood approved all three loans.
The first property received a loan of £325,125 at a 76.5 per cent LTV, supported by a £106,250 deposit funded through a director’s loan with no repayment terms.
The second property secured £363,375, also at a 76.5 per cent LTV, with a £118,750 director’s loan providing the deposit.
The third property was refinanced for £553,900 at a 76.4 per cent LTV. Redwood was able to refinance this property away from a larger bank due to improved value for money and flexibility, supported by Redwood’s updated affordability criteria introduced in May.
All loans included a 2 per cent arrangement fee and began with a five-year fixed rate of 6.49 per cent, followed by a 23-year variable rate of Base +3.49 per cent. Each loan carried a total term of 28 years, with the first five years fixed rate on an interest-only basis.
The client would be 85 at the end of the loan term, which remains within policy for this type of deal.
Properties one and three also qualified for a Green Cashback Reward of 0.20 per cent.
THE EXPERIENCE
The application process was handled by Redwood’s lending team, primarily by James Egerton, Lending Relationship Officer and Ian Tudor, Regional Development Manager. Together they made sure the broker was kept updated with the progress of the loan and sought to support its progression through to completion.
Ian Tudor, Regional Development Manager at Redwood Bank, said: “I have known Propp for a number of years and we have built a very good relationship. This deal shows how our aligned values and great service are benefitting us both with a repeat application and drawdown for this family property business.
“The client is a brilliant example of the professionalisation we are seeing across the private rented and property market and it is so good to be able to assist an experienced investor for the purpose of supporting the care sector. We look forward to completing more business in the future.”
Abigail Webster, Property Finance Consultant at Propp Limited, said: “This facility has allowed our client to secure competitive pricing on a portfolio and created the ability to plan strategically for further growth in the assisted living sector over the coming years.
“It’s a pleasure to work with a lender like Redwood that understands the value the assisted living sector provides to our society. Thanks to Ian and the team for supporting this transaction; we look forward to working together again in the future.”
To find out more about Redwood please visit https://redwoodbank.co.uk/intermediaries.