StreamBank has issued a £584,500 bridging loan to refinance a commercial warehouse in London and release capital for the refurbishment of four residential flats.
The borrowers, experienced London-based business owners with a varied mixed-use property portfolio, approached the lender through a broker to raise funds against a warehouse valued at £945,000. The property was owned by a PropCo, with rental income generated by an associated OpCo.
The clients sought to repay an existing £70,000 mortgage on the warehouse and free up capital for refurbishment works. StreamBank provided funding at 65% loan-to-value based on market value, subject to tenancies. The transaction was supported by strong management information from the OpCo.
A rate of 0.84% per month was agreed, with repayment expected through a commercial term refinance with a challenger bank.
“The success of this case came down to a combination of underwriting expertise and deep business understanding,” said Roz Cawood, managing director of lending at StreamBank (pictured). “By taking the time to assess the OpCo’s strong trading position and cash flow, our team was able to leverage market value, subject to tenancies, to secure a higher loan amount. This allowed the client to meet both their refinancing and refurbishment goals. It’s a great example of how StreamBank applies commercial knowledge to deliver the right solution.”
