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Lawrence Stephens advises LHV Bank on £7.4m refinancing of prominent retail parade

Posted on: December 4th, 2024 by Natasha Cox

The Lawrence Stephens Real Estate Finance team is pleased to have advised regular client LHV Bank on the £7.4m refinancing of a parade of shops located in a prominent Essex town, secured across multiple titles with more than 20 tenants and leases. The facility also refinanced a bridging loan, ensuring the client’s financial goals were met within a tight timeframe.

The team worked closely with LHV Bank to review multiple cash flow scenarios across more than 20 leases while ensuring clarity on security positions across multiple titles. Collaboration across internal departments including credit, operations, and finance was vital to work to the tight deadline. Our team ensured that the entire process was completed ahead of schedule. Originally targeted for completion on 29 November, the deal was finalised two days early thanks to seamless collaboration between our team and the bank.

Conor McDermott, Director of SME Lending at LHV, commented: “The team worked tirelessly with Fine Mortgages to complete this on challenging timescales, with the transaction completed within eight working days of approval. Special thanks to the legal team at Lawrence Stephens led by Anna Christou, who worked on this over the weekend to ensure a successful refinance.”

Greg Palos, Head of Real Estate Finance at Lawrence Stephens responded: “Despite the complexity and speed of this transaction, our sector expertise and the strength and depth of our team contributed to an excellent outcome for our client.”

Lawrence Stephens advises Blue Shield Capital on £16.7m loan

Posted on: November 21st, 2024 by Hugh Dineen-Lees

We are pleased to report that Lawrence Stephens has advised regular client Blue Shield Capital on a £16.7 million loan for a UK landlord and BTR operator specialising in city centre rental living.

This 12-month facility, across two assets in Manchester and Leeds, will support their borrower in redeeming their existing debt and restructuring their portfolio. Blue Shield Capital is a fast-growing property lending firm who provides flexible financing solutions for property owners and investors. This deal is one of the largest they have completed to date and is the latest in a number of fast-moving deals they have undertaken supported by our team.

The team was led by Director and Head of Banking Ajoy Bose-Mallick, with support from Directors Ann Ebberson and Alex Edwards.

Ajoy commented: “We are delighted to have supported Blue Shield on one of their largest deals to date. Credit to the dynamic Lawrence Stephens’ team for delivering a fantastic outcome for our client”.

Lawrence Stephens completes the sale of Brampton Dental Practice to L&P Ltd

Posted on: August 13th, 2024 by Hugh Dineen-Lees

Lawrence Stephens’ Corporate team recently completed the sale of the entire share capital of Brampton Practice Limited to L&P Ltd in July 2024.

The team was led by Director and Head of Corporate and Commercial, Jeff Rubenstein with support from Solicitor, Isobel Moran and Director, Nick Marshall from the Commercial Real Estate team as well as Trainee Solicitor, Heather Ramsey.

Jeff, Director at Lawrence Stephens: “The successful conclusion of this deal reflects our team’s expertise and commitment to facilitating strategic business transitions within the dental sector. We are delighted to have supported Brampton Practice through this process and wish Mark all the best in his future plans.”

Mark Moran, Former Director of Brampton Dental Practice Limited commented: “I am deeply appreciative of the professionalism and support provided by the entire team at  Lawrence Stephens. This sale not only signifies a personal milestone for me  but also ensures the legacy of Brampton Dental Practice continues under new ownership.”

We congratulate all involved in this successful sale and look forward to the practice’s future under the guidance of L&P Ltd.

If you are a Dental practitioner thinking of selling your business please reach out to our team who have significant expertise in this sector and can guide you through this process.

Lawrence Stephens’ Real Estate Finance Borrower team drives summer success with a trio of transactions

Posted on: August 13th, 2024 by Hugh Dineen-Lees

The Borrower team at Lawrence Stephens, led by Nisha Saigal and supported by Claire Boyd and Aida Gashi, has been making significant strides this summer in the real estate market. They’ve taken on a diverse portfolio of residential and commercial properties, collaborating with various lenders.

Here’s a closer look at some of their July deals:

Deal 1: Refinancing of Residential Flats

The Lawrence Stephens team facilitated the refinancing of two residential flats, with a substantial loan amount of £2.45 million. Acting as the sole representative for the borrower, they collaborated with the Bank for Intermediaries/Professionals as the lender. Their expertise in navigating complex transactions played a crucial role in achieving success.

Deal 2: Refinancing of HMOs (Houses in Multiple Occupation)

The team successfully refinanced three Houses in Multiple Occupation (HMOs) with a loan amount of £1.45 million. Acting as the sole representative for the borrower, they collaborated with Hampshire Trust Bank plc as the lender. Their expertise in managing complex transactions ensured a smooth process for all parties involved.

Deal 3: Purchase of Freehold Property

The Borrower team also facilitated the acquisition of a freehold property, subject to tenancy, with a loan amount of £138,000. The transaction involved dual representation, and the lender was a specialist in Buy-to-Let financing. Their ability to navigate complex scenarios and find practical solutions was instrumental in achieving a successful outcome.

These transactions underscore their dedication to cultivating robust, enduring connections with borrowers. The team’s proactive mindset, industry acumen, and streamlined execution position them as a reliable ally in the real estate finance arena.

Residential Real Estate market update: navigating the current UK housing market

Posted on: August 9th, 2024 by Yvonne Uzoka

The Bank of England (the ‘BoE’) Monetary Policy Committee’s recent decision to cut interest rates to 5% and the anticipated government taxation regime announcement in October 2024 are likely to affect both the wider UK housing and Prime Central London (‘PCL’) markets. In this market update our Residential Real Estate team take a look at the possible effects.

Impact on Swap Rates and the UK housing market

Let’s dive in. The UK housing market continues to show robust price growth. Earlier analysts’ predictions of an expected 1.8% rise in housing prices in July 2024, prices have been surpassed by actual increases of 2.1%. This unexpected growth reflects strong pent-up demand as borrowing conditions improve. In anticipation of the BoE’s interest rate cuts, several mortgage lenders, such as HSBC, NatWest and Nationwide, have recently reduced their mortgage rates boosting approvals to around 60,000 per month.

Following the BoE’s decision, five-year swap rates fell to 3.6%, the lowest since February 2024. This is under the crucial 4% threshold and experts are predicting rates will stabilise around 3.25% above pre-pandemic levels.

Why does this matter? The current trends suggest that lenders expect long-term interest rate reductions, making 5 to 10 year fixed mortgages the most cost-effective options. This indicates that lenders are keen to secure borrowers at these lower rates, which are predicted to drop over the next few years – a positive signal for the housing market.

Overall, there is cautious optimism. While house prices are rising steadily, borrowing conditions are improving and no dramatic drops in rates are expected.

The contrasting trends in PCL: signs of recovery?

In the wake of 20+ months of economic fluctuations and high interest rates, the UK property market has shown a mix of different trends. In the broader market Q2 of 2024 saw a 22% increase over the previous quarter for properties valued between £3-15 million. However, during the same time period, PCL prices were falling, with valuations dipping slightly. The trend of increasing average discounts has continued for the seventh consecutive month after three years of declines. This suggests that PCL may be influenced by other factors and the recent interest rate reductions may have a limited effect.

Despite the ratio of available stock to monthly sales at 25:3 in Q1,2024 to 22:6 in Q2, 2024, supply remains high, with an above long-term average of 20. Consequently, sellers must maintain realistic expectations regarding property prices, especially as the market broadens and buyers are presented with more options.

Key takeaway:

  • Demand is rising, but price drops in PCL are likely to continue as supply remains high.

The Government’s taxation updates and potential impacts

Lastly, we address the central government’s upcoming taxation regime, due to be announced in October, and its potential impact on the housing market. The Labour Government’s mandate is pro-growth, with an expectation of coming into effect by 6 April 2025. However, the practical implementation remains uncertain.

They aim to boost public service investment and stimulate the economy without raising income tax, national insurance, or corporation tax, which constitute about 80% of tax revenue. Proposed changes include:

  • Taxation of non-UK domiciled individuals – individuals with 10 consecutive years of non-residence will be exempt on their foreign income and gains received in the first 4 years of residence in the UK. It is irrelevant whether the income and gains are remitted to the UK;
  • Introduction of VAT on private school fees;
  • Abolition of furnished holiday lets (FHL) regime;
  • Adjustments to taxation on carried interest; and
  • Changes to transfer of assets abroad.

It is unclear if the government can achieve growth with these mechanisms or if they will backtrack on promises. As such, borrowers, lenders, and property owners should stay vigilant in the coming months.

At Lawrence Stephens we are dedicated to helping our clients navigate these changes. If you have any questions or need assistance, please do not hesitate to contact our specialised Residential Real Estate team.

Lawrence Stephens Real Estate Finance Borrower team completes three deals

Posted on: July 8th, 2024 by Hugh Dineen-Lees

Lawrence Stephens’ Real Estate Finance Borrower team, led by Nisha Saigal and supported by Claire Boyd and Aida Gashi,  have hit the ground running taking on an impressive range of residential and commercial properties with various lenders. Here is a snapshot of some of their deals.

1. Bridging Deal: 9 Days to Completion

In a remarkable feat, Lawrence Stephens assisted a client in completing a bridging deal within just nine days from the receipt of the mortgage offer. The property in question was an auction purchase with a purchase price of £820,000. The lender involved was KSEYE, and the swift execution underscores the team’s agility and commitment to their clients.

2. HMO Property Refinance

The Real Estate Finance Team also handled a refinance for an HMO (House in Multiple Occupation) property. The loan amount was £300,000, and the transaction involved dual representation.  The team’s industry-wide experience in the commercial, residential, healthcare, and leisure sectors played a crucial role in ensuring a successful outcome.

3. Freehold Subject to Tenancy

Lastly, Lawrence Stephens facilitated the purchase of a freehold property subject to tenancy. The property had a purchase price of £535,000, and once again, dual representation was involved. The BTL (Buy-to-Let) specialist lender supported this transaction, demonstrating the team’s ability to navigate complex scenarios and find practical solutions.

These deals highlight their commitment to forging strong, long-term relationships with borrowers. The team’s proactive approach, industry expertise, and efficient execution make them a trusted partner in the real estate finance landscape.

Lawrence Stephens strengthens Real Estate Finance and Banking teams with new Directors from Rosling King

Posted on: July 1st, 2024 by Yvonne Uzoka

Leading corporate and commercial law firm, Lawrence Stephens, is pleased to announce the appointment of Ann Ebberson as Director in the Real Estate Finance department, and Alex Edwards as Director in the Banking department – both joining from Rosling King.

Ann and Alex are well-known industry practitioners and their expertise complements the firm’s established Real Estate Finance and Banking practices. They are both recognised in The Legal 500 directory and bring with them a wealth of knowledge and experience across these sectors. 

Ann has acted for and advised lenders, loan servicers, developers and LPA/fixed charge receivers on real estate and real estate portfolio refinancing, sales, purchases, development acquisitions and sales, landlord and tenant matters including service charge disputes and forfeiture proceedings. She also has notable experience in title rectification issues and advising litigation colleagues in complex real estate disputes.  

Alex advises lenders, sponsors, developers and corporate borrowers on all forms of finance transactions. With a particular focus on real estate and development finance, Alex also regularly advises on senior and mezzanine loans and bridging finance, as well as restructuring and resolving existing loan facilities. In addition, Alex’s construction law expertise allows him to provide a comprehensive service to his clients on development finance transactions, dealing with both the finance and construction elements.

They join Directors Greg Palos and Ajoy Bose-Mallick who lead Lawrence Stephens’ Real Estate Finance and Banking practices respectively.

Ajoy Bose-Mallick commented: “Alex is a fantastic addition to our banking team and brings with him great experience of working with sponsors, developers, corporate borrowers and other alternative lenders especially development finance lenders, at a very exciting time for the firm.”

Greg Palos said: “Ann’s arrival provides us with greater strength in depth and bolsters our ability to advise clients in a wide range of transactions. Her arrival is in line with the expansion of our Real Estate Finance capability, which continues to go from strength to strength.”

News of Ann and Alex joining Lawrence Stephens was covered by Law360, New Law Journal and LegalMoves.

12-month bridge loan secured for Blue Shield Capital

Posted on: June 4th, 2024 by Natasha Cox

We are pleased to share with you that we have acted on a £6 million loan for our clients Blue Shield Capital on the refinance of three stabilised, income-producing residential assets.

This £6 million facility will allow the borrower to facilitate a restructure of their group operations and refinance some of their property portfolio in order to expand their business.

Ajoy Bose-Mallick Director and Head of Banking led the team with assistance from Senior Associate Ashley Wright & trainee Alex Ruder on banking and Paul Marsh Director on real estate.

Commenting on this transaction, Ajoy Bose-Mallick said “we have completed on another important funding facility for our clients which will expand their loan book and showcase their ability to fund larger complex transactions. Again this deal highlighted the Banking and Real Estate Finance team working seamlessly together to deliver on a successful completion for our clients.”