Shawbrook’s structured real estate team has completed a £9.05m deal for a property investor seeking a complex BTL mortgage solution.
The client had an existing loan secured against 89 self-contained units in an MUFB and needed financing to repay the loan, in order to retain 43 units for assured shorthold tenancies and sell the remaining units.
However, further challenges arose for the investor during the sale of the units, which led to the need for additional funding to extend the sales timeline.
Shawbrook’s structured real estate team worked together with the development finance division, and together, they were able to provide a £9.05m five-year residential investment facility at 65% LTV to support the client.
The £9.05m funding package comprised a £5.15m BTL loan for the 43 rental units, and a £3.9m development exit loan to enable the investor to extend their sales timeline for the 28 units.
Karan Doshi, senior relationship manager for Shawbrook’s Structured Real Estate team, commented: “Our structured real estate team has been working extremely hard behind the scenes to support customers requiring large and complex loans and we’re delighted to see our first completion, only a few months after our launch.
“We take pride in our ability to navigate the complexities of our customer’s goals and our collaboration with the development finance team on this project in Northampton is emblematic of how we aim to find solutions to complex problems and deliver bespoke finance that truly aligns with our client’s ambitions.”
Tom Edmunds, relationship director for Shawbrook’s development finance team, added: “We launched our development exit loan earlier this year and its excellent to see how it can deliver positive outcomes for our customers.
“As a specialist bank, we excel in providing complex funding solutions, and this case highlights our team's ability to collaborate in-house to support customers with unique needs.
“We look forward to working alongside our real estate teams in the future to deliver more expert funding to customers looking to capitalise on opportunities.”
William Bowler, head of commercial finance at Curo Mortgages — which acted on behalf of the client — commented: “Our customer was extremely pleased with the successful completion of this deal with Shawbrook.
“Despite being an experienced investor with a history of working with various lenders, this was their first experience with Shawbrook, and the bank surpassed all expectations in delivering this funding.
“From initial conversations with Karan Doshi in the structured real estate team to working alongside Tom Edmunds in the development finance team, Shawbrook provided a highly personalised service and ensured they truly understood the customer’s goals.”
