Redwood Bank’s flexibility means age doesn’t limit landlord’s plans
23 September 2024
An experienced landlord’s business plans – under threat because of his age – were saved when a specialist business bank offered a flexible solution.
Chris Thomas of FC Funding approached Redwood Bank, knowing that it is always keen to find solutions after looking at each case independently.
The landlord was looking to remortgage a £1.2m semi-commercial property near Kentish Town tube and overground station in London after a refurbishment and his existing lender had turned him down as he would be 97 at the end of the 25-year term.
BDM Ian Tudor said: “The introduction came from a broker who I have known for many years.
“This was the first deal we were able to complete with them. They approached me as they were aware the landlord was in his seventies and didn’t know if we would be able to assist, although they had said his son was more involved in the business and for succession planning would becoming a director and shareholder of the limited company.”
Redwood’s usual maximum borrowing age at end of term is 75, but that can be extended if circumstances merit. In this case, it was straightforward with the son becoming a shareholder and director. With manual underwriting, Ian was able to understand the situation and make an informed decision, based on common sense.
A loan of £561,000 (LTV 43 per cent) on a five-year fixed deal over 25 years on capital and interest repayment terms was made available, allowing the development finance to be repaid, while also letting the landlord progress with his plan of making his son a director.
“We were delighted we were able to support this request, providing a longer-term finance option which has saved the family money as we were able to provide a better rate than the existing lender.”
Chris Thomas said: “Working with Ian to get the deal approved was a truly positive experience. We look forward to future collaborations with Redwood Bank.”
For further information, visit www.redwoodbank.co.uk
