InterBay completes complex commercial refinancing for new build rentals

20 April 2026

Specialist commercial lender InterBay, part of OSB Group, has completed a £3.8m commercial finance facility in Central London to support the development of two new residential properties.

The asset, a four storey commercial building with three tenants, was originally held within a family trust established by the client’s parents. The trust was subsequently annulled, requiring the property to be transferred into the client’s sole name. This restructure included a second property within the trust, which was allocated to a family member, meaning there were multiple complexities and exceptions to standard lending policy.

The client sought to release capital from the commercial asset to fund the construction of two residential units on their own land, for which planning permission had already been secured.

InterBay provided an interest only, 120 month term loan, enabling the client to progress the build programme without the added cost or administration of a development finance facility. The residential properties will be retained as rentals in a portfolio.

Marc Callaghan, Head of Commercial Lending, InterBay, commented:

“Transferring property out of a trust structure can be highly complex and must meet specific legal and taxation conditions. Considerations around Inheritance Tax (IHT), Capital Gains Tax (CGT) and other liabilities all come into play. Our Specialist Finance Account Manager, Simon Ward, worked closely with Mark Jerman at Watts Commercial to identify the most effective route to funding the client’s development ambitions.”

Mark Jerman, Senior Commercial Manager, Watts Commercial Finance, added:

“The client needed to raise capital to support the build costs for two new residential properties. While a traditional development facility was an option, it would have introduced additional professional layers, fees and complexity. Instead, we agreed a simpler, more cost effective solution: securing a term loan against unencumbered assets within the client’s portfolio, with full funds released at the outset. InterBay demonstrated exceptional expertise and flexibility throughout, and the collaborative approach between our teams resulted in an excellent outcome for the client.”