Redwood Bank has completed a £403,410 semi-commercial loan on a Liverpool mixed-use property where the borrower was simultaneously acting as both landlord and business occupier, resolving the deal through an OpCo/PropCo structure.
The property, valued at £565,000, comprises four residential flats above a commercial unit occupied by the customer’s own trading business. Because no rent was being paid on the commercial space, a market rental figure had to be established before the transaction could proceed, and the relationship between the property-owning entity and the trading business needed to be formally documented.
Working alongside broker White Rose Finance Group, Redwood agreed a market rent for the commercial premises, put a formal lease in place between the two entities, and structured the deal under an OpCo/PropCo arrangement. Rental income was used as the main affordability component, and the loan completed at 71.4% LTV within four months.
“This was a great example of how OpCo/PropCo structuring and semi-commercial lending can sit alongside each other in more complex cases,” said Jane Hand, regional development manager (North and Midlands) at Redwood Bank (pictured).
“By taking the time to fully understand the trading business and property elements of the deal and the customer’s long-term objectives, we were able to deliver a solution that supported both their immediate needs and future investment plans.”
White Rose Finance Group, a long-standing broker partner of Redwood’s, introduced the transaction and worked with the bank throughout the process.
“Redwood’s personal approach and willingness to look at the detail of a case is what sets them apart,” said David Fine, client and projects manager at White Rose Finance Group. “The team took the time to understand the structure and worked collaboratively throughout, which gave us and the customer confidence from the outset. Having direct access to experienced decision-makers made a real difference in getting the deal over the line.”
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