Redwood backs assisted living expansion with HMO funding package

A specialist lender has supported a portfolio landlord’s expansion in the assisted living sector through the completion of three HMO loans in Surrey.

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Redwood Bank, working with Propp Limited, has provided funding for three HMOs in Guildford, each let to a long-term care provider supporting residents with learning disabilities, mental health needs and other social care requirements.

The funding package enabled the purchase of two properties alongside the refinance and equity release of a third, allowing the landlord to drive further portfolio growth. The combined loan value totalled £1,242,400.

Ian Tudor (pictured), regional development manager at Redwood Bank, said: “This deal shows how our aligned values and great service are benefitting all parties, with a repeat application and drawdown for this family property business.

“The client is a brilliant example of the professionalisation we are seeing across the private rented and property market and it’s fantastic to support an experienced investor committed to providing quality accommodation for the care sector. We look forward to completing more business in the future.”

All three loans were approved for the returning landlord, with two of the properties qualifying for Redwood’s Green Cashback Reward due to their environmental performance.

Redwood’s updated affordability criteria, introduced in May, helped facilitate the refinance of the third property away from a larger bank, improving value and flexibility for the client.

The application was managed by Redwood’s lending team, led by James Egerton, lending relationship officer, working alongside Tudor to ensure clear communication and a smooth route to completion.

The completion marks the second successful collaboration between Propp and Redwood in 2025, following an earlier loan secured against four properties. The latest deal further reinforces the lender’s specialist capability in financing social care accommodation.

Abigail Webster, property finance consultant at Propp, said: “This facility has allowed our client to secure competitive pricing across the portfolio and to plan strategically for further growth in the assisted living sector.

“It’s a pleasure to work with a lender like Redwood that understands the vital role this sector plays. Thanks to Ian and the team for their support – we look forward to working together again.”

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