Peter Greig, Senior Specialist Property and High Net Worth Account Manager, OSB Group
Complex property transactions continue to create opportunities for lenders willing to take a more tailored approach to underwriting. Demand remains strong for funding that sits outside traditional product and policy frameworks, particularly where borrowers are seeking solutions for portfolio acquisitions, mixed-use assets, refurbishment opportunities and specialist commercial transactions.
Without fixed product or policy criteria, the focus is on building strong relationships with brokers and understanding the detail behind each transaction. Advisers often recognise when a deal should be viable but can find themselves constrained by traditional lending parameters. A more bespoke approach can help bridge that gap, combining greater flexibility with a structured approach to risk and delivery.
We’ve seen strong demand from brokers looking for support on larger and more sophisticated transactions, with both enquiry levels and conversion rates proving encouraging.
Last year, we averaged around £10m per completion, with individual loans ranging from £5m to £45m. The cases coming through are broadly what we anticipated, including complex ownership structures, multi-asset portfolios and assets where there is a clear opportunity to create additional value.
With no upper limit on loan size, we’re also seeing larger and more sophisticated opportunities coming through, often involving investors with more efficient ownership structures.
The way brokers approach these cases is developing too. The advisers we work with generally have an excellent understanding of both their clients and the market, and the quality of information we receive is often very high. That allows us to focus quickly on the areas that are most important from a decisioning perspective.
As relationships develop, brokers also become more familiar with how we assess cases, which can help streamline the process further.
One of the most important factors in a successful specialist transaction is early engagement. Structuring a deal that works for all parties takes time, and it becomes much harder to retain flexibility once a transaction is constrained by deadlines.
The earlier we’re involved, the greater the opportunity to shape the structure, pricing and terms in a way that supports the client’s objectives.
Mixed-use properties and purpose-built student accommodation continue to feature prominently in the opportunities we see, alongside a broad range of multi-occupied assets.
We’ve maintained a strong appetite across these areas. One of our strengths is the expertise available through our Real Estate team, which provides detailed insight into local market dynamics, particularly within the student sector, alongside cashflow and sensitivity analysis.
Combining specialist lending expertise with real estate analytics helps us assess opportunities that may require a deeper level of understanding than more straightforward transactions.
Refurbishment projects also remain a significant area of activity, particularly where borrowers are looking to improve asset performance or unlock additional value. We’ve supported a number of projects that have delivered meaningful value uplift, reflecting continued investor interest in assets where there is an opportunity to reposition or future-proof income streams.
Technology and platform transformation continue to enhance lending journeys across OSB Group, but specialist property finance still relies on a combination of digital capability, experienced judgement and strong broker relationships.
Technology has an important role to play in areas such as analysis, stress testing and decision support. Automation works well for cases that sit within clearly defined parameters, but specialist transactions often require a much more detailed assessment of the borrower, the asset and the wider commercial context.
OSB Group’s new lending platform, part of a wider five-year transformation investment, demonstrates how technology can enhance the lending journey without removing the need for specialist assessment on more complex cases. The platform has strengthened the wider ecosystem by improving segmentation and ensuring cases are directed to the right teams, while larger portfolio transactions and commercial-scale opportunities continue to benefit from a more tailored assessment process.
Specialist property lending also forms an important part of OSB Group’s broader diversification strategy. Structured commercial lending, bridging and portfolio finance are all areas where bespoke underwriting can deliver value for clients while supporting the lender’s wider objectives.
We’ve also contributed to a number of proposition developments across the wider business, helping ensure market opportunities are supported by appropriate policy and pricing structures.
Refinancing activity remains strong, with many borrowers continuing to assess their funding options as pricing and market conditions evolve.
If greater stability doesn’t emerge as quickly as some anticipate, we may see additional pressure on gearing and serviceability, creating more opportunistic transactions. We’re already seeing examples in parts of the market where investors and developers are looking to recycle capital or exit positions.
For lenders with the experience to assess complex opportunities and structure solutions around them, the specialist property market continues to offer significant potential.