As well as announcing changes to its aggregate value criteria, which should make valuations for clients with multiple units more straightforward, the firm has announced clarification around valuation for multi-tenant properties as well.
In relation to the aggregate value improvements, Sales and Marketing Director of Commercial Mortgages - Karen Bennett commented that the decision to remove the five unit limit intended to make life easier for both clients and brokers.
“We’re continually assessing how we can improve our product line and various processes,” Karen said.
The bank will now lend from the aggregate value, regardless of block size, providing the valuer can confirm a strong demand where units are expected to be sold within a 12 month period.
“From a client perspective this simplifies the valuation process, and we have every confidence that this will also make our brokers’ lives easier,” Karen added.
In developments on multi-tenant commercial properties, Shawbrook can now lend against market valuation, where as it used to lend based on the vacant possession figure.
The bank takes the valuer’s opinion on how strong the demand is for re-letting into consideration when issuing the Initial Mortgage Offer, helping to ensure that client’s expectations are achieved. If the valuer believes the property could be re-let within six months, this could also act as a reassurance to the lender.
Karen believes that this change will support investors with commercial units, whilst offering a simple and secure way of borrowing.
“We’re always striving to develop and refine our product range for our broker partners,” she added.
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