Redwood Bank has announced that it has completed a £1.47m rural refinance on a working farm after other lenders stepped back from the deal, deterred by its agricultural ties and rural location.
A deal others declined
The £1,468,800 loan is secured against a portfolio of industrial units valued at £2.5m, with Redwood approving the facility at 58.8% LTV on a commercial and industrial term with a 2% fee.
The deal completed within four months and was introduced by Advantage Financial Solutions Ltd, with broker James Etheridge working closely with Redwood throughout.
Because the property achieved an EPC rating of B, the borrower also qualified for Redwood’s Green Cashback Reward, receiving £5,760 on completion.
“Rural transactions can often require a more detailed and considered approach, particularly where there are agricultural ties that may narrow lender appetite,” said Mark Dobson, head of business development for London, the South-West and South at Redwood Bank (pictured).
“This was a strong asset with a clear long-term income profile, and by taking the time to understand the background of the deal, we were able to provide the broker and customer with confidence and certainty throughout the process.”
“In cases like this, flexibility and a willingness to engage with the detail can make a significant difference,” he added.
Broker experience
Etheridge was positive about how the transaction was handled. “Redwood stood out from the very start for their willingness to engage with the detail of the deal and their confidence in the security,” he said.
“As our first transaction together, the experience has been extremely positive. Their speed of response and collaborative approach gave us and the customer reassurance from the outset, and they delivered throughout the process.”
“Cases involving rural assets often require a more detailed and considered approach, particularly where there are agricultural links that may limit lender appetite. By taking the time to meet the customer and fully understand both the property and its history, Redwood was able to present a clear and well-supported case.”
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