Case Study: £1.96m Loan for 12 Apartments in West London

24 March 2016

Completion of a Large Residential Investment loan on the Bank’s LRI1 product, at a gross loan-to-value (LTV) of 54.6% on 10 years interest only.

From offer being issued to full completion in a little over a fortnight, this case demonstrates the customer-first approach taken by Shawbrook teams which ensured a swift completion for the customer, a professional investment vehicle.

This loan facilitated the re-finance of 12 residential apartments. Subsequent to Shawbrook instructing their partners at Appraisers UK to engage a valuer on their panel, it became clear that there were some issues concerning planning arrangements. Fortunately, despite the valuation being carried out during the festive period (22nd December), a full report was provided less than a week later, which ensured the Shawbrook lending teams were able to begin investigating the planning issues as soon as possible.

This centred on whether the relevant consent had been obtained in regards to the conversions on two of the apartments, which were less than 30 square metres in size. The property had also approximately quadrupled in value since the original purchase in 2007, which necessitated additional consultation between the Shawbrook Lending Manager and valuer. After thorough investigation, the valuer was unable to confirm whether the property possessed the correct planning for some conversions which took place towards the end of 2015.

Despite what could have been a considerable stumbling block, the Shawbrook lending and credit teams considered the case on its individual merits and, after satisfying themselves that the quality of conversions was high alongside a sensible LTV percentage, were able to proceed. Shawbrook’s on-site legal team, Pure Law agreed proceeding with title insurance cover, which was communicated swiftly to the broker so that they could inform their client at the earliest available opportunity.

The Shawbrook lending teams also noticed several defects with the current lease agreement, relating to some of the text being drafted incorrectly and discrepancies between the tenant’s name which was listed differently from the correct legal entity. After receiving confirmation from the valuer that this would not adversely affect their valuation, the Lending Manager on the case was able to take a flexible view and instruct the solicitors to proceed to completion within two business days.

The broker, James Hardwick from Charleston Financial Services Limited, commented:

“Once again, we were very impressed with the personalised service provided to our client by Shawbrook Bank. As a Strategic Partner, we’ve grown accustomed to the expertise and pro-active case management skills of their lending teams, as well as the open communication channels between the Bank, their solicitors Pure Law and their valuer panel.

“Day-to-day discussions between Charleston and Shawbrook led to several group credit policy exceptions being agreed throughout the underwriting process, which was fundamental in achieving a really positive outcome for the customer.”