The deal was secured on behalf of an experienced investor who purchased at auction a freehold property in High Holborn, London, consisting of a convenience store on the ground floor with four self-contained flats above.
The investor then sold the shop on a long lease which cleared the bridging finance that was used to make the initial purchase. With the remaining unencumbered flats valued at £1.2 million and bringing in a gross monthly rent of £5,800 the investor was able to raise a further £660,000 with WLB to reduce cash flow and make additional property investment purchases.
Mortgages for Business arranged finance at rate of 3.7 per cent over LIBOR for three years on an interest only basis with a lender fee of 1.95 per cent.
Steve Olejnik, head of sales at Mortgages for Business, who negotiated the deal on behalf of the client, was extremely impressed with WLB’s transaction processes.
He says:
“Their expertise and efficiency completed the deal in just 21 working days. It is refreshing to be working with professionals that have an appetite to lend and deliver an excellent service. The legal process in particular was second to none."
Whiteaway Laidlaw Bank launched on 7th April this year and has already processed over 200 applications totalling an estimated £50 million of potential funding.
As a lender only available via selected intermediaries, WLB targets experienced property investors and has been working with its partners to design products for the more complex residential investment opportunities including HMOs, semi-commercial and multi-unit free hold properties.
Stephen Johnson, new business director at Whiteaway Laidlaw Bank said:
“It is great to have made such a fast start, although we have only just begun our journey and are committed to delivering a level of service that will provide our partners with a competitive advantage in the market.
"We are grateful for the support we have received from our partners’ and will continue to work with them to achieve the right blend of volume and quality. Certainly, the first client Mortgages for Business brought to the table fits our profile perfectly.
"As most commercial banks continue their move away from property based lending to relationship only funding, we are proud to be swimming against this tide and providing credit to good quality owner occupied businesses and property investors."
