Redwood Bank has supported an investor’s growth in the assisted living sector by providing a £1,306,800 loan secured against four houses in multiple occupation (HMO) properties valued at £2,055,000.
The properties are let to a supported housing company providing accommodation for people with learning difficulties, mental health issues, autism and other health and social care needs.
The deal allowed the investor to release equity from two of the HMOs to use as a deposit, enabling the purchase and transfer of the other two HMOs from personal ownership to a limited company.
The loan was agreed at 64% loan-to-value (LTV) on a 19-year interest-only term, starting with a 5-year fixed rate at 6.49%.
Ian Tudor (pictured), business development manager at Redwood Bank, said: “It was so good to be able to assist an experienced investor, introduced by a reputable broker, for the purpose of helping the care sector.”
Paul Elliott, of Propp, said: “This facility has allowed my client to secure competitive pricing on a high-yielding portion of their portfolio, and created the ability to plan strategically for further growth in the assisted living sector over the coming years.
“In their own words, ‘there is a real need for this sort of housing’ so it’s really satisfying to work with a lender like Redwood that understands the value the sector is providing to our society.
“What impressed me most was the flexibility Redwood showed throughout the process.
“There were some challenges along the way, but the team at Redwood approached each issue with a ‘can do’ attitude that is sometimes lost in the mainstream buy-to-let space with so much focus on automated decisions and standard, inflexible loan conditions.”
Elliott added: “Moreover, the client appreciated having an opportunity to meet their proposed lender face-to-face – albeit virtually – to talk about their business, their plans and how Redwood could support them as their commitment to providing assisted living accommodation grows.
“It was also a great opportunity to iron out some of the finer details quickly and concisely prior to the loan drawdown rather than going back and forth with emails which was important given we were getting close to deadline day.
“Thanks to Ian and the team for supporting this transaction and we look forward to working together again in the future.”
