Shawbrook helps repeat client with their long term property investment strategy
24 September 2018
Case highlights bank’s bridge to let to term finance options
Shawbrook were approached by Broker Partner Sterling Knight to help a client purchase two adjacent blocks compromising of 18 flats in Birmingham worth £1.7m. The clients were looking for a short term loan of £1.27m so they could purchase the flats in order to split them into leaseholds and either refinance for buy-to-let purposes or sell.
The applicants were long-standing clients of Shawbrook and were delighted that the lender could help them with their new project. Shawbrook approved the loan on their STL1 product allowing the clients to purchase the flats at a discounted ‘block’ basis, all without tying up their assets. Once the flats were split into leaseholds, the clients sold a portion of the stock (at a refinance value of £120,000 each) and have refinanced the other flats, two of which onto Shawbrook’s RI0.1 product. This case proves that Shawbrook can support clients along their property investment journey.
Paul Steel, Director at Sterling Knight comments;
“We were delighted to assist our longstanding repeat borrowing client with the purchase of this property, which allowed them to split the title onto long leaseholds and refinance several of the flats in Shawbrook’s specialist BTL term finance”.
Sarah Woolf, Senior Development Manager for Shawbrook Commercial Mortgages added;
“Working closely with Sterling Knight, we’re delighted that we were able to help an existing customer with their long term property investment strategy. The original bridge to let loan helped the client to free up capital and the smooth transition from STL to term meant minimal cost and time incurred”.
