UK Commercial Matters

White Rose Finance Group Ltd

Case Study Commercial Mortgages

£1.1m Commercial Mortgage In 16 Days

White Rose Finance helps to facilitate a £1.1m commercial mortgage in sixteen days

A pioneering UK Property Group has revealed how it arranged a finance package with legal completion secured within 16-days of being introduced to Redwood Bank by Peter Leonard of Whiter Rose Finance.

Acclaimed CEO and founder Paul Nicholson explained the fast turnaround was required to enable the Group to purchase it’s next pioneering and ground-breaking property redevelopment, within the agreed timescale and applauded Redwood Banks ethos and speed of delivery.

The Situation

Nicholson Group was about to finish a prestige development comprising of 2 commercial units and 12 residential 1-bedroom apartments in the centre of St Helens known as Nicholson Plaza. In line with the Nicholson Group Midas-Operandi the development had been funded from the Group’s own resources. With the development nearing completion funds were needed to be raised against the completed project in a time critical manner.

Due to the borrower’s understanding exactly what the market in St Helens required both the commercial units were let and generating an income with the residential units all pre-let prior to completion. Therefore, the asset was income generating from Day1

Paul made a direct approach to respected Commercial Broker Peter Leonard of Whiterose Finance with whom Paul had previously worked with on the Group’s other completed developments in St Helens.

Following an initial conversation with CEO Paul Nicholson, along with a complete proposal document Peter made an approach to Mark Dolphin – Redwood’s Bank Business Development Manager who had recently visited Whiterose Finance as part of Mark’s regular contact with Whiterose Finance, and at the time expressed the bank’s willingness to consider transaction of this quality and type.

A detailed synopsis was provided by the broker, which enabled Mark to provide Heads of Terms within 24-hours along with the confirmation that Redwood Bank would be able to complete the valuation and legal due diligence within the agreed timescale, giving both the broker and client peace of mind. The formal credit sanctioned was received within 48-hrs (received via Text on a Saturday), which evidenced Redwood’s desire to work to the client’s timescale.

The solution

To ensure the client was able to release the maximum amount available from the re-development Redwood Bank agreed to split the requirement into 2 separate facilities – a 20-year facility in connection with the commercial units and a 30-year facility in connection with the residential units. It is important to note both facilities were fully committed for the full term of the facility by Redwood Bank.

The commercial property was valued at £365,000 and the residential element valued at £1,185,000

Total lending amounted to £1.12m vs a with a procuration fee of £11,112

Overall LTV 71.8%

The above is a great example of how Redwood Bank was keen to find a solution which matched the clients credit appetite whilst at the same ensuring the facility met the bank’s own credit parameters.

 The Experience

The deal was not without its challenges, but by communicating clearly with all parties these challenges were quickly dealt with to the satisfaction of all parties. Paul commented that the overall speed of delivery from initial contact with his broker to sanction and ultimately completion was highly impressive and given the current climate and uncertainty over the UK economy it is very encouraging to experience how pro-active lenders such as Redwood Bank are in the property market.

Nicholson Group is now viewing Whiterose Finance as its go to Commercial Broker and Redwood Bank as its long-term funding partner as it embarks on a very ambitious yet highly scalable plans for its property development pipeline in 2020 and beyond which will see the Nicholson Group move towards its target of achieving a £50m portfolio value within the next 2-years


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