The case was brought to Shawbrook by Mark Flower from commercial brokerage Stratford Corporate Finance.
The lending and group credit team at Shawbrook discussed the case – a complex limited company transaction against three blocks of flats on one title in Gillingham, Kent – before granting approval, subject to valuation, enabling the borrower to proceed immediately without incurring any initial valuation or legal costs.
The credit team met with the borrower to ensure all requirements were satisfied and the funds were provided just two months after receipt of the valuation.
“A valuable long-term client – a developer and investor – approached us to refinance 38 flats that they had developed in recent years,” said Mark from Stratford Corporate Finance.
“However, the title had not been split and all 38 were on one freehold.
“Given the costs of the refinance, the clients were looking to maximise their gearing to 75% LTV. “[It] accepted that while this was a fairly heavy concentration, the fact that the 38 flats were split across three blocks that were of excellent quality enabled them to take a practical view.
“[Shawbrook] also agreed to lend against the block freehold values, rather than market investment and we could raise £4.2m for the client on a 10-year, interest-only deal.
“Looking at this from both a broker and customer perspective, we were very impressed with Shawbrook.”
Gavin Seaholme, senior development manager at Shawbrook (pictured above), added: “Our traditionally flexible approach to the client and the security – along with a strong working relationship with Stratford Corporate Finance – meant that we were able to communicate easily, openly and often.
“This complex loan was a real challenge, but that’s exactly the kind of transaction Shawbrook is used to tackling.
“It is always a real privilege to deliver for our brokers and their clients and we were delighted that all parties were satisfied with the outcome.”
See full post here http://www.developmentfinancetoday.co.uk/article-desc-6192_shawbrook-provides-%C2%A342m-residential-investment-loan-to-developer