Redwood Bank Secures £400k Mixed-Use Property Deal in Liverpool Using OpCo/PropCo Structure

Redwood Bank has completed a £403,410 loan for a mixed-use property in Liverpool, demonstrating the increasing demand for specialist lenders to navigate complex OpCo/PropCo structures. For fintech and banking professionals, this deal highlights how manual underwriting and tailored commercial lending are filling the gap where automated high-street processes often struggle with owner-occupied assets.

What was announced

The transaction involved a £565,000 mixed-use asset in Liverpool, comprising four residential flats situated above a commercial unit. The deal was unique because the commercial space was occupied by the customer’s own business, meaning no formal rent was being paid at the time of application. To facilitate the funding, Redwood Bank worked alongside White Rose Finance Group to establish a market rental figure and formalise the relationship between the property owner and the trading business.

By implementing a formal lease, the bank was able to adopt an OpCo/PropCo structure, which separated the operating business from the property-holding entity. This allowed the rental income to be used as the primary component for determining affordability. The specialist bank delivered the £403,410 loan at a 71.4 per cent loan-to-value (LTV) ratio. Despite the complexity of the owner-occupier arrangement and the need to formalise internal leasing structures, the entire process was completed in under four months. This semi-commercial lending solution was designed to support the investor's immediate funding requirements while accommodating their long-term investment objectives within a single, unified structure.

"This was a great example of how OpCo/PropCo structuring and semi-commercial lending can sit alongside each other in more complex cases. By taking the time to fully understand the trading business and property elements of the deal and the customer’s long-term objectives, we were able to deliver a solution that supported both their immediate needs and future investment plans."

Jane Hand, regional development manager (North and Midlands) at Redwood Bank.

The companies involved

Redwood Bank is a specialist business bank focused on providing secured lending to UK small and medium-sized enterprises (SMEs) and property investors. Led by Chief Executive Officer Gary Wilkinson, the bank has established itself in the market by offering a more manual approach to underwriting compared to larger retail banks. It typically handles cases involving commercial mortgages, residential investment, and bridging loans. The bank operates with a focus on regional development, as evidenced by the involvement of Jane Hand, its Regional Business Development Manager for the North and Midlands.

White Rose Finance Group acted as the broker for this transaction. The firm is a long-standing partner of Redwood Bank, specialising in sourcing complex commercial finance solutions for a variety of property-related needs. David Fine, the Client and Projects Manager at White Rose Finance Group, managed the relationship for this Liverpool deal. The firm’s role often involves bridging the gap between property investors and specialist lenders who are willing to look beyond standard credit scoring to understand the underlying business logic of a transaction.

What FF News has reported before

FF News has tracked Redwood Bank’s activity across several significant milestones in the specialist lending sector. The bank recently expanded its incentive programmes, as seen when Redwood Bank Expands 100% Valuation Fee Cashback to Commercial and Bridging Loans. We also covered their technological advancements, such as when Redwood Delivers £1m Scottish Portfolio Refinance Through New Digital Platform, showcasing a blend of digital efficiency and specialist expertise. Other notable reports include a Specialist Bank Completes Complex and Time-sensitive Multi-property Refinancing and instances where the Specialist Bank Supports Long-standing Partner in Next Phase of Growth.

What this means

This deal underscores a significant trend in the UK commercial property market: the necessity of bespoke lending in an era of rigid algorithmic approvals. As SMEs increasingly seek to own their premises while maintaining clear separation between trading and property assets, the OpCo/PropCo model is becoming a standard requirement rather than a niche exception. High-street banks often struggle with the lack of historical arms-length rental data in owner-occupied cases, putting pressure on traditional lenders to either modernise their risk assessment or cede the SME market to specialist players. The speed of this completion suggests that the competitive advantage in commercial lending now lies in the ability to formalise informal business structures quickly.