Landmark Specialist Finance secures £1.14m bespoke StreamBank facility for Hackney refinance

Landmark Specialist Finance (LSF) has secured a bespoke two-year term product from StreamBank to refinance a Hackney probate refurbishment, after recent adverse credit left the borrowers’ bridging loan without a mainstream exit.

The £1.14m facility avoided a further 12-month bridge and gave the clients time to rebuild their credit.

The borrowers bought the Hackney property for £1.3m.

One of the original purchasers passed away during the lengthy probate process, and his widow joined as co-applicant so the purchase could complete.

Because of the property’s condition, LSF arranged a £750,000 net bridging loan with StreamBank, and refurbishment works began.

As the bridge neared expiry, a change in one applicant’s circumstances had resulted in recent adverse credit, ruling out the planned move onto a mainstream term mortgage.

With the property still vacant, the alternative was a further 12-month bridge.

LSF worked to avoid that outcome and approached StreamBank to find an alternative.

StreamBank does not currently offer term mortgages in the mainstream market but, after taking time to understand the clients’ circumstances and drawing on its relationship with Landmark, it built a two-year term product specifically for the case.

The facility is a £1.14m loan against a valuation of £2.34m, an LTV of around 49%.

It redeemed the bridge and released a further £340,000, which covered the refurbishment costs.

The property is now fully let, generating a combined £9,900 a month from the basement flat and upstairs maisonette.

The two-year term gives the borrowers time to rebuild their credit profile, with the aim of remortgaging to a mainstream lender at the end of the period, subject to eligibility at that time.

Gurmail Singh, head of specialist lending at Landmark Specialist Finance (pictured above), commented: “Recent adverse credit can close the door on a mainstream exit even when the property and the numbers stack up.

“Our job was to find a lender willing to look at the whole case, because the alternative was another year on a bridge at extra cost for clients who were already dealing with a bereavement.

“We were patient with them, and StreamBank’s willingness to build a bespoke product is what got it done.”

Aiman Maklad, BDM at StreamBank, added: “This isn’t a product we offer off the shelf.

“The security was strong, and we understood the clients’ circumstances, so we were comfortable structuring two years that give them space to rebuild their credit.

“I don't believe this significant deal would have happened without that relationship."