Shawbrook – New! Criteria Changes on Social Housing & Share Purchases

shawbrook logoOur products are designed for PROfessionals, by PROfessionals. That’s why we’re making the following changes to our proposition, to make it even easier to obtain funding for your clients on two more complex types of transaction.

Read on to find out more…

Our Enhanced Social Housing Proposition!

We understand the growing demand for social housing in the UK and are continuing to see professional landlords diversify into these types of leases. We’re therefore delighted to enhance our PROposition by clarifying our appetite and improving our process for social housing!

Acceptable Property Types:

  • Properties let to operators who provide supported living can be considered , including dwelling-houses and houses in multiple occupation but must have planning use of C3 or C4; however, hotels and residential institutions (C1, C2, C2A planning) remain unacceptable security.

Improved Process:

  • Leases can vary depending upon which operator the landlord is letting the property to – in order to help ensure a lease is acceptable for us to lend, solicitors can now be instructed to review social housing leases post-IMO. This will provide greater clarity on the lease before incurring valuation costs. The solicitors will want an undertaking for costs for this work, which currently stands at £450 + VAT.
Widened Appetite for Share Purchases

We understand more sophisticated investors will at times decide to acquire the shares of a company that owns one or more properties, rather than buying the individual assets.

Having completed some of these transactions by exception, check out our updated lending criteria as these types or transaction are now incorporated into our standard proposition. The key highlights include:

  • No minimum or maximum loan sizes.
  • Purchases must be at full market value and of property companies.
  • Separate legal representation (these cases cannot proceed on a non-represented basis) and we do require customers to have had their own legal advice on the company acquisition.
Our Lending Criteria

Our transparent lending criteria is designed to provide our broker partners with clear guidelines of our lending appetite. Use the button below to view our lending criteria across all our products, or download our product guide to ensure you’re up-to-date with our proposition.

Lending Criteria             Download Product Guides