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When a deal is put at risk through no fault of the client, it’s important that a bank can act quickly to secure the necessary finance and allow a business to continue to grow. This was the scenario facing Redwood Bank when approached by Kevin Morgan of Cornerstone Finance Group. Embracing the Bank’s values of tenacity, clarity, certainty and integrity, BDM Rob Thompson was able to complete the deal.
THE SITUATION
A new development hit a problem when a change of policy by the intended lender meant a deal for finance couldn’t go ahead.
The customer needed a lender who was happy to accept properties on a long-term lease and needed to find a more cost-efficient form of lending to pay off a loan used to exit bridging finance.
The development features four new builds on one title, three with four bedrooms and one with five. The properties, just south of Bristol city centre, are let on corporate leases to one of the largest providers of housing to the Home Office.
Although not responsible for the hitch, the client still needed to find a solution, especially as they had already paid for the valuation.
THE SOLUTION
Rob liaised directly with the client, reassuring them that there would not be any duplicated costs. A number of hurdles relating to the property title were spotted, but nothing that prevented Redwood from being able to make a suitable offer.
Redwood goes the extra mile and used a common-sense approach to lending to help fund a deal that supports accommodation for some of the most vulnerable in society. The Bank was also able to help the client be more cost efficient compared to the current lender. Their efforts in being environmentally friendly with an A-rated EPC earned them a Green Reward cashback of 0.50%.
The client received £969,000, with an LTV of 48.8 per cent against their £1,985,000 properties with a 10-year interest-only deal on a five-year fixed term.
By working closely with the client, Rob was able to move quickly to find solutions that suited all parties.
THE EXPERIENCE
BDM Rob Thompson said: “This is a strong example of Redwood's human-centred approach to underwriting and dedication to supporting British businesses and the wider community. Our ability to accept longer-term leases attracted this case to us, and our competitive interest rates enabled us to secure it."
Kevin Morgan, of Cornerstone Finance Group, said: “Redwood stepped in after another lender could no longer accept the criteria. They accepted the existing valuation and were able to get the finance the client needed to exit their bridge.”