A Birmingham-based landlord has completed an £847,500 refinance with Redwood Bank, consolidating debt across two children’s care homes and a five-bedroom HMO with a combined value of £1.13 million.
Mohammed Yousaf, director of Serenity Consultancy (UK) Ltd, secured the funding after two other lenders declined the application due to the complexity of the supported housing lease structures. The transaction consolidated existing borrowing from a high street bank and another specialist lender into a single facility, while releasing capital for future acquisitions and property improvements.
Redwood Bank provided the loan at 75% loan-to-value on a five-year fixed residential investment mortgage with a 30-year interest-only term. The deal completed within three weeks from full approval to drawdown.
Portfolio operator with care services
Yousaf has developed a property portfolio over more than a decade alongside businesses providing supported accommodation and residential care services. His organisations now operate eight children’s care homes across the West Midlands and employ approximately 90 staff.
The supported housing sector has seen growing interest from landlords, with HMO licence applications rising 40% since 2018, reflecting increased demand for specialist accommodation.
David Sampson, director at Omega Commercial Solutions Ltd, introduced the transaction and worked with Redwood on the refinance. He noted the complexity of the portfolio refinance but described the lender as straightforward to work with throughout the process.
Lender approach to complex cases
Mark Dobson, head of business development (south) at Redwood Bank, said the deal demonstrated how the lender works with brokers and customers to support landlords with growth plans. He highlighted the decision-in-principle process as providing early certainty before moving quickly to completion.
The supported housing market has attracted attention from property professionals expanding operations across the Midlands, with student letting agencies also expanding to the region in recent months.
Yousaf stated the funding would support the next stage of growth in his portfolio and associated services, with plans to increase the number of homes operated while raising accommodation standards. He indicated confidence in potentially refinancing more of his portfolio in future.
The case highlights the challenges property investors face when seeking finance for specialist accommodation with non-standard lease structures, requiring lenders willing to assess applications beyond conventional criteria.
