Episode 32 - Tuesday 22nd September

Commercial mortgages, hotel refurbishment finance and complex buy-to-let refinancing highlight continued lender flexibility

This week's transactions highlight continued activity across commercial mortgages, specialist refurbishment finance and complex buy-to-let refinancing, with lenders supporting borrowers across very different stages of the property lifecycle.

From Roma Finance completing its first commercial mortgage and transitioning an existing borrower from development finance into longer-term funding, to Glenhawk supporting the acquisition and refurbishment of a Grade II-listed hotel and Lendco taking a practical view on an unusual MUFB/HMO hybrid, each transaction demonstrates the importance of commercial understanding, pragmatic underwriting and joined-up lender teams.

Below are three of the standout transactions from this week's market activity, followed by Owen Nayar's commentary on the key trends emerging across the real estate lending market.

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Roma Finance completes first commercial mortgage with £2.4m Market Harborough facility

Transaction Overview:

Lender: Roma Finance
Facility: Commercial Mortgage
Loan Size: £2.4m
Leverage: 63% Gross LTV
Term: 15 Years
Location: Market Harborough

Roma Finance completed its first commercial mortgage, providing a £2.4m facility to Alistructures Limited secured against Hermitage Works Business Park in Market Harborough.

The facility completed within 25 working days and was provided at 63% gross LTV against a £4.2m market valuation. The 15-year commercial mortgage was structured on a five-year fixed rate of 8.52%, providing longer-term funding for the completed asset.

The transaction refinanced an existing Roma development facility, allowing the borrower to transition from development finance into a funding structure more appropriate for the next stage of the asset.

Located on Desborough Road, the site comprises offices alongside a new commercial building. It had previously been a semi-derelict former farmyard before Alistructures Limited approached Roma in 2024 for development finance to support its transformation into the current business park.

At completion, the site was 80% let, with three units remaining available. The commercial mortgage provides a longer-term structure aligned with the property's completed and income-generating position.

The transaction represents a significant milestone for Roma following the launch of its commercial mortgage proposition. It also demonstrates the benefit of lenders being able to support the same borrower across multiple stages of the property lifecycle, from initial development finance through to longer-term commercial lending.

Deal Team:

• Michael Allison, Commercial Director, Roma Finance.
• Sonia Mann, Head of Sales, Roma Finance.

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Glenhawk provides £1.12m refurbishment facility for Grade II-listed Bath hotel

Transaction Overview:

Lender: Glenhawk
Facility: Hotel Refurbishment Loan
Loan Size: £1.12m
Leverage: 80% Loan-to-Purchase Price Day One / 100% of Refurbishment Costs / 66% LTGDV
Location: Bath

Glenhawk completed a £1.12m refurbishment facility secured against a Grade II-listed boutique hotel in Bath.

The facility supported an experienced developer who had acquired the property below market value and required funding for both the acquisition and refurbishment programme. Glenhawk provided 80% loan-to-purchase price on day one alongside 100% of the refurbishment costs, with the overall facility structured at 66% LTGDV.

The funding enabled the borrower to acquire the asset and undertake the works required to bring the hotel up to the desired standard, with the planned exit through term debt following completion of the refurbishment.

The transaction required a specialist approach due to the combination of a below-market-value acquisition, high day-one funding requirement, commercial refurbishment programme and the Grade II-listed status of the property.

By taking a commercial view of the overall proposition, Glenhawk was able to structure a facility around both the acquisition and works while maintaining a clearly defined route to longer-term finance.

Deal Team:

• Sophie Meller, Senior BDM London, TAB.
• Omar Azami, Partner, Ploutos Associate.

Lendco completes £562,500 remortgage against complex MUFB/HMO hybrid

Transaction Overview:

Lender: Lendco
Facility: Buy-to-Let Remortgage
Loan Size: £562,500
Leverage: 75% LTV
Property Value: £750,000

Lendco completed a £562,500 buy-to-let remortgage at 75% LTV, secured against a two-unit multi-unit freehold block/HMO hybrid valued at £750,000.

The property had originally been an end-of-terrace house before being converted into two separate units, one of which operates as an HMO. The unusual configuration required additional consideration from both the lender's sales and underwriting teams.

The transaction also involved a complex tenancy arrangement, requiring Lendco to review the supporting documentation in detail to understand how the property was structured, occupied and generating income.

Following its assessment, Lendco took a practical view of the overall proposition and provided the 75% leverage required by the borrower, allowing the client to refinance away from the existing lender within the necessary timeframe.

The transaction demonstrates how specialist lenders can support properties that fall outside more conventional buy-to-let structures where the underlying evidence, income profile and wider underwriting rationale provide sufficient comfort.

Deal Team:

• Harrison Reeve, Lendco.
• Alex King, Executive Director, Lendco.
• Joshua Rees-Davies, Senior Marketing Director, Lendco.

What this week's transactions tell us about the market

This week's transactions highlight continued activity across commercial mortgages, refurbishment finance and complex buy-to-let lending, with specialist lenders supporting borrowers through flexible structures designed around both the individual asset and the borrower's longer-term objectives.

Commercial mortgages continue to provide an important route for borrowers moving beyond the development stage. Where an asset has been completed and is generating income, the ability to transition from development finance into a longer-term facility can provide greater stability while allowing the borrower to retain continuity with a lender that already understands the property and wider investment strategy.

Specialist refurbishment finance also remains important where properties carry additional complexity. Glenhawk's funding of a Grade II-listed hotel in Bath demonstrates how lenders can take a more considered approach to cases involving below-market-value purchases, higher day-one leverage and substantial refurbishment requirements. Where the works, borrower experience and exit strategy are clearly understood, more complex commercial assets can still attract lender support.

Practical underwriting also continues to play a significant role within the buy-to-let market. Properties that sit outside conventional structures, such as multi-unit blocks incorporating HMO accommodation, can require additional scrutiny around tenancy arrangements, configuration and rental income. Where lenders are prepared to assess the supporting evidence rather than relying solely on standard criteria, they can provide solutions for borrowers whose properties do not fit a traditional mould.

Across this week's transactions, the recurring theme is the importance of looking beyond the immediate funding requirement. Whether supporting a borrower from development into longer-term commercial finance, funding the refurbishment of a specialist asset or assessing an unusual buy-to-let structure, joined-up sales and underwriting, practical decision-making and a clear understanding of the exit continue to be key to getting complex transactions completed.

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Why these Transactions Matter

Tuesday's Top Transactions showcases some of the most notable deals completed across the UK real estate finance market each week.

By highlighting completed transactions across bridging finance, development finance, commercial real estate lending and specialist funding solutions, the series provides brokers, lenders, developers and property professionals with valuable insight into current lending activity and evolving market trends.

More than simply reporting completed deals, each episode offers a snapshot of where lender appetite exists and how facilities are being structured to support increasingly complex borrowing requirements.

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Have a Transaction Worth Sharing?

If you've completed a notable real estate finance transaction and would like it featured in a future edition of Tuesday's Top Transactions, we'd love to hear from you.

Sharing successful deals helps showcase innovation across the market while providing valuable insight for brokers, lenders and property professionals following the latest lending activity.

To submit a transaction for a future episode, contact Owen here:

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