Kent Reliance for Intermediaries, part of specialist mortgage provider and retail savings group OneSavings Bank plc, was approached by Fitch & Fitch on behalf of a client seeking refinance of 9 new build flats in central London with a view to selling off plan to foreign investors. As an added incentive, the properties were also placed in an off shore SPV.
However, during the construction phase, the London property market had declined in value and offers received were lower than expected. Finance was therefore re-arranged to provide a 5 year fixed rate product so the properties could be held until the market changed. Accountant advice taken at the same time showed there was no longer a tax advantage to holding the properties in an off shore SPV as it also restricts lender choice, therefore the accountant advised to move the properties to an UK SPV on completion. The client also needed to clear short term finance as part of the move to a UK SPV resulting in overall finance being required for just over £8 million.
Due to the complex nature of the case and the large loan amount, the application was presented to KRFI’s transactional credit committee to provide early indication of whether the case would be accepted and if further evidence was required. The client had a strong borrower covenant having owned, and continuing to own a number of successful property related businesses. A long form valuation on all 9 flats was agreed and this saved the client £7,500 in specialist valuation fees.
Adrian Moloney, Sales Director, OneSavings Bank, said, “As an experienced specialist lender, our broker partners know that we welcome complex cases as we have the expertise and knowledge to get these cases over the line. Our dedicated complex case team works very closely with our BDMs to ensure that the client is kept fully up to date and their requirements and timescales are given key focus.
David Wise, Head of Business, Fitch & Fitch, commented, “There is no doubting when the subject is big loans that Kent Reliance for Intermediaries are a part of any conversation. They dominate in the high loan to value territories and when you combine this with asset backed interest only options it helps us at Fitch and Fitch to orchestrate lending solutions that really harmonise with our client’s needs.
The final complement to their offering is their criteria and underwriting with a wealth of experience and a dedicated large loan underwriting team. The seemingly complex cases are considered coherently and positively adding to their overall service which makes them our ‘go to’ lender for large loans.”
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