South Lakes Housing – Loan Due Diligence

South Lakes Housing is the largest provider of affordable rented housing in South Lakeland, Cumbria.

Objective

We were appointed to undertake a due diligence review of Lune Valley Rural Housing Association’s (LVRHA) CAF Bank loan facilities and Charity Deposit Platform, and to evaluate the options available to South Lakes Housing in relation to these loans in the event of a transfer of engagements from LVRHA.

What we did

DTP reviewed LVRHA’s CAF Bank loan facilities and reported the key terms and implications to South Lakes Housing’s Board. This included setting out recommended actions to be taken ahead of a transfer of engagements and, should the loans be retained, the actions required post-transfer.

We also modelled and presented a range of repayment options for the CAF loans to South Lakes Housing’s Funding Panel and Board. DTP supported officers throughout the process, including the finalisation of arrangements to prepay the loans on completion of the transfer of engagements.

What we achieved

DTP provided South Lakes Housing’s Board with a clear understanding of the terms and conditions associated with LVRHA’s CAF Bank loans, alongside the actions required to ensure these would not restrict the organisation if retained.

The analysis and presentation of prepayment options supported the Board in deciding to prepay the CAF loans on completion of the transfer. Our support to the Director of Finance and Head of Financial Planning and Treasury enabled South Lakes Housing to agree a clear and workable mechanism with CAF Bank to complete the prepayment as part of the transfer process.