Shawbrook Commercial delivers positive customer outcome for client of Strategic Broker Partner Commercial Financial Services.
The customer originally acquired a property on Roman Road in East London, using Shawbrook’s STL6 product for a gross loan of £428k on 18 months interest only, at a LTV in excess of 70%. The loan’s purpose was to facilitate the refurbishment of the existing residential unit and commercial shop, to convert into 3 separate flats and a smaller shop.
STL6 for heavy refurbishment was chosen given the requirement for a mansard roof extension. The broker, Simon Purdom of Commercial Financial Services provided evidence of his client’s expertise in this area which ensured the progression of the case to Formal Offer Stage (FMO).
Although there were some elements surrounding the valuer’s report which were challenged, these were rectified by proactive daily communication between the Short Term lending teams and the broker, meaning any delays did not threaten the completion of the loan.
Once the works were completed and the property fully refurbished, Commercial Financial Services was eager to explore how their client could refinance onto a term loan in the most economical way. The broker suggested a split of the property, moving the commercial element into a new company (a sister to the existing borrowing company), thus avoiding the expense of a semi-commercial term loan.
Although the initial loan agreement in 2014 was on the basis of the original semi-commercial unit being converted into wholly residential, the client retained the shop unit after refurbishment. Considering the strength of the client and the positive track record they had with Shawbrook Commercial, the Lending Manager on the case was able to take a pragmatic view.
This ensured that the client was able to receive the maximum amount of finance possible on two separate loan agreements.
The broker, Simon Purdom from Commercial Financial Services, commented:
“My client has an excellent ongoing relationship with Shawbrook, partly due to the type of progressive lending philosophy which this case study illustrates.
“The lending teams which made these deals such a success are a credit to the Bank. All parties were especially pleased by the imaginative term solutions when it came to refinance and Shawbrook were central to achieving a positive outcome for my client.”