Many deals, one anchor point: The power of a specialist team in complex lending

In specialist lending, most cases involve some level of complexity, whether that’s in the asset, the structure behind it or the timing — and often all three at once. The job is not to remove that complexity, but to understand it properly and determine where the real risks lie.

That requires more than a single view of a transaction. It depends on being able to look at the asset itself, the structure around it and the strength behind it as a whole.

This is where the combination of a specialist commercial lender like InterBay, part of OSB Group, and its high net worth and specialist property team becomes important, particularly in larger or more complex transactions where both scale and structure need to be considered.

A specialist team within a specialist lender

The high net worth and specialist property team combines relationship management, specialist underwriting and transaction structuring within a single function.

Its role is to support larger or more complex property transactions, particularly where assets are not yet stabilised, income is still emerging or business plans are being delivered in phases, and where there are legal or practical nuances that sit outside standard lending.

Taking a broader view of the borrower’s position within what the wider OSB Group offers, the team provides continuity throughout the life of the relationship while acting as a single point of contact as requirements evolve.

In practice, this means combining detailed structuring expertise with ongoing relationship oversight, coordinating between borrowers, brokers and internal teams to ensure transactions progress smoothly and decisions remain aligned.

This becomes particularly important where multiple facilities are progressing at the same time, ensuring a consistent approach across the relationship and all of its activities.

Putting it into practice

Let’s look at one example. InterBay has been working with a rental property developer since 2021, initially funding a portfolio that required significant remediation following a period of poor management.

There were compliance issues to address, refurbishment works to complete and operational improvements to put in place. The focus at the outset was not simply on the condition of the assets, but on whether there was a well-defined plan to improve them.

Over time, the developer’s plan has been executed. The quality of the portfolio has improved, income has strengthened and values have moved accordingly.

As that progress has been demonstrated, additional lending has been agreed, reflecting both the performance of the assets and a growing understanding of how the borrower operates.

Regular engagement has been central to that, allowing a consistent view of delivery and providing the basis for further support. That has often involved coordinating multiple transactions in parallel, alongside ongoing reviews and further funding requests, requiring a coordinated approach across both new and existing facilities.

In Bolton, funding was provided for a large BTR scheme at an early stage in its letting cycle, where occupancy was still low and income had yet to stabilise. The presence of an overage agreement with the council added a further layer of complexity.

In this case, the focus was on understanding how the asset would perform once fully let and then structuring the facility to reflect that trajectory, rather than relying on current income alone.

In Halifax, a similar situation applied, with an asset that was partially let and with income not yet fully stabilised.

The case also included an overage linked to future value growth, although this was not considered material in the short term. The focus was therefore on how the asset would perform as it stabilised, rather than allowing that clause to drive the overall structure of the transaction.

In Durham, the challenge was more directly linked to timing. A newly completed development required short-term funding while construction concluded and lettings gathered pace.

At that stage, rental income was not sufficient to service the borrowing, so the focus shifted to the borrower’s ability to support the asset through that period and the clarity of the exit strategy.

Structuring a bridging facility in those circumstances required a well-defined path through to stabilisation, with confidence in both the timing and the borrower’s ability to support the asset.

The small details and the big picture

Across these cases, timing is a consistent consideration, with each asset at a different stage of transition. In some, income is still building; in others, it has yet to fully emerge. Lending decisions are therefore based on an informed view of how each asset is expected to perform once stabilised, rather than its current position alone.

What the high net worth and specialist property team brings is the ability to take that view with confidence.

By combining specialist structuring expertise with a broader understanding of the borrower, the team can support more complex transactions, particularly where assets or structures fall outside standard parameters and require a more tailored approach.

At the same time, it provides continuity across multiple facilities and acts as a single point of contact as the relationship develops, ensuring that individual lending decisions are considered within the context of the wider client relationship.

That approach becomes more important over time. Working with the same borrower across multiple transactions builds a detailed picture of how assets are managed, how challenges are addressed and how capital is deployed.

It also allows lending decisions to be informed by experience rather than assumption, and for support to be extended in line with delivery.

For borrowers operating at scale, particularly in sectors such as BTR, that consistency is important. Assets move through different phases, and the point at which funding is required does not always align with full stabilisation.

The ability to structure lending around that reality, while maintaining continuity across the relationship, is what allows those portfolios to grow.

The value of that combined approach is evident.

It brings together the structuring expertise needed to handle more complex transactions with the relationship oversight that ensures continuity across multiple transactions and across the life of the relationship.

In practice, that means that while the underlying deals may be intricate, the way they are managed remains aligned, coordinated and consistent.