Case Study: £410k loan for car showroom conversion

By Bridging Loan Directory 30th March 2016

Completion of a short term loan (STL) on the Bank’s STL6 product, at a gross loan-to-value (LTV) of 65.6% on 12 months interest only.

With just 13 business days between issuing the offer and completing on the loan, this short term loan was brokered by Shawbrook’s Strategic Broker Partner, CPC Finance. Shawbrook’s Commercial Mortgages business is 100% broker submitted via their panel of trusted Broker Partners, who are accredited by the Bank and CPC Finance are one of their most experienced brokers, with over 500 cases completed with Shawbrook alone during the last five years. A broker such as CPC Finance deals with lenders on a day-to-day basis, so they’ll know what the application process is like and will be of great use to processing your loan.

The borrower, Mr. Malkit Purewal had already purchased a former car showroom before planning to convert this into 4 residential apartments and office space. One of the residential units had yet to be converted as it was awaiting planning approval, and there were some issues in regards to a boundary dispute, whereby ground floor windows to the rear were blocked by a new wall on an adjacent property. Mr. Purewal required a loan to release some additional funds to complete all works, with CPC Finance seeking out Shawbrook for this purpose.

After receiving the valuation report, the Shawbrook Lending Manager spoke directly with the borrower, Mr. Purewal in order to discuss the boundary dispute. This forms part of Shawbrook’s commitment to transparent communication with the borrower, which is paramount in order to process loans as efficiently as possible. Subsequent to being satisfied with this initial stumbling block, the Shawbrook lending teams liaised with the broker CPC Finance to engage solicitors as soon as possible. As the fourth residential unit was only part way through refurbishment, a full title investigation was deemed necessary in order to provide clarity for all parties in the lending process.

The communication between Pure Law, Shawbrook’s on-site legal team and Mr. Purewal’s solicitors was positive, with daily interchange between the two in order to complete the loan to the best possible timescale. With the borrower satisfied about receiving their funds so swiftly, the Commercial Mortgages division at Shawbrook Bank was pleased to contribute to a positive customer outcome.

The broker, Karl Griggs from CPC Finance, commented:

“I was pleased to see the type of upfront and thorough case management which makes my job of dealing with the Shawbrook lending teams as beneficial as possible, both for myself and my client. This is typical of the Bank and one of the primary drivers behind our long term relationship.”

The client, Mr. Malkit Purewal, added:

“Communication throughout my loan application was both forthright and much welcomed. As an investor who has taken out multiple loans with Shawbrook, I have found them to be a lender with integrity who my partners and I can trust. We look forward to working again with Shawbrook in the future on other loans for our portfolio.”