Shawbrook funds £1.2m capital raise on new development in Dorset
Shawbrook funded a £1.2m capital raise on a new development in Dorset.
Strategic Partner “Laybourne Finance” approached Shawbrook with a case from an experienced developer who had recently completed a new build development of six flats in Dorset.
The client was looking to redeem his existing development finance and release some capital for their next project. Shawbrook was able to provide the client with a loan of £1.22m at 75% LTV against the aggregate value of the flats.
Liam Keighley, director at Laybourne Finance, said: “Shawbrook was able to meet the tight deadlines set by our client to prevent them from having to service their existing development finance.
“Not only were we able to refinance their debt onto a lower interest rate but also free up cash to allow them to secure other projects they are working towards.
“You can’t put a price on being able to pick up the phone and have a discussion with the underwriter, and Shawbrook’s flexibility is what allowed this deal to come through.
“Steve and the team at Shawbrook worked tirelessly to help this client and it cemented our relationship with the borrower, which is what we value most.”
The property had strong commentary from the valuer on both sale and lettings, and a term of nine months was agreed on the STL1 product with interest rolled up and included in the redemptions to allow the sale of the units.
Peter Turner, senior development manager for Shawbrook Commercial Mortgages, added: “As always with new builds there are challenges with the security, but Liam and Steve worked tirelessly with the bank and both sets of solicitors to ensure the process remained as smooth as possible so that we met the client’s expectations.
“Laybourne are a pleasure to work with as they are able to view each case from both the client’s and lender’s perspective to ensure all parties are happy. This was Steve’s first case and completion with Shawbrook and I hope it’s one of many.”