Redwood Bank has completed a £1.47 million refinance on a working farm in a transaction that several mainstream lenders declined due to the property’s agricultural ties and rural location.
The loan is secured against a portfolio of industrial units valued at £2.5 million, with the facility approved at 58.8% loan-to-value on commercial and industrial terms with a 2% arrangement fee. The transaction completed within four months and was arranged through Advantage Financial Solutions Ltd.
Lending appetite for rural assets
According to Mark Dobson, head of business development for London, the South-West and South at Redwood Bank, rural transactions typically require additional scrutiny, particularly where agricultural ties may limit lender appetite. “This was a strong asset with a clear long-term income profile, and by taking the time to understand the background of the deal, we were able to provide the broker and customer with confidence and certainty throughout the process,” Dobson said.
The borrower qualified for Redwood’s Green Cashback Reward due to the property achieving an EPC rating of B, receiving £5,760 on completion. The cashback scheme reflects growing emphasis on energy efficiency in commercial property financing, where environmental performance increasingly influences lending terms.
Broker perspective
James Etheridge from Advantage Financial Solutions, who arranged the deal, noted this was his first transaction with Redwood Bank. “Redwood stood out from the very start for their willingness to engage with the detail of the deal and their confidence in the security,” Etheridge said. He added that rural assets often require a more detailed approach where agricultural links may limit lender appetite.
The transaction highlights the challenges in rural property financing, particularly in regions where housing and commercial property markets face structural constraints. Agricultural ties can complicate refinancing arrangements, requiring specialist lenders willing to assess properties beyond standard commercial metrics.
Market context
The deal represents a segment of the commercial property market where specialist lenders fill gaps left by mainstream institutions. Rural and agricultural-linked properties often face restricted financing options, despite representing viable commercial assets with established income streams.
