Specialty in social housing transactions

Social Housing Transaction Services

Prudential Trustee Company is a market leader of Trustee and Agency Services in the social housing market with over £100 billion worth of assets secured to us across more than 1.6 million properties.

The role of the Security Trustee in social housing transaction is to act as sole point of contact between the housing associations and the funders, thus allowing a fluid and efficient management of the property portfolio and management of the properties secured to the funders.

We ensure the quality of the residential portfolio and compliance with the underlying documentation without jeopardising the flexibility required for the management of the portfolio.

Advantages of using an expert independent trustee for borrowers and lenders

Feature Benefits

Main point of contact in the team for any requests during the life of the deal.

Enables timely response to requests and efficient resolution of issues.

Centralised management of releases and requests.

Dedicated team of experts liaises with all relevant parties and provides assistance for processing requests for releases and management of the portfolio within 24 hours. Reduces administration requirements for all parties.

Expert review of certificates of title to confirm that they represent acceptable security for the transaction, both initially and during the life of the transaction.

Aims to ensure preservation of the portfolio quality.

Ability to use properties as an unallocated element of security (charged to PTCL as Security Trustee).

Efficient management of the portfolio and the transaction as required. Ability of new lenders to access the transaction. The properties can be allocated to a new lender or used as a surplus to top up existing security for a lender.

Ability to move security from one lender to another without having to discharge the underlying security.

Reduces Land Registry fees and may enhance efficient management of the portfolio.

Property reconciliations regularly undertaken and reported to borrower and lender/s.

Independent reconciliation of secured portfolio to ensure accuracy of records. Two levels of service provided, with reconciliation:

• Units totals only; or

• With latest valuations (market value and existing use value) provided.

Security may be held on a specific or numeric basis.

Provides greater flexibility for the borrower and lender to hold security depending on relevant requirements.

Bespoke service.

Ability to tailor the service according to the relevant parties’ requirements (please see below for more details on the different levels of service provided).

Portfolio Security Administration – 3 Levels of Service for Note Trustee / Noteholder Representative

Our Note Trustee/Noteholder Representative (the “Trustee”) services encompass all of the services that we provide as Bond Trustee (in a capital markets transaction) but relate to private placements in the social housing market.

In addition the service can be tailored across three different levels, depending on clients’ specific requirements in relation to the outsourcing of management of the underlying portfolio to the Trustee.

Level one

Everything is sent to lenders directly. No involvement in compliance.

Releases/management of the portfolio on instruction from the lenders.

Level two

Trustee receives the compliance certificates on behalf of the lenders.

No changes in the releases/management of the portfolio mechanism.

Level three

Trustee chases compliance certificates and verifies the accuracy of certain information provided (eg calculation of Asset Cover ratio).

Releases/management of the portfolio outsourced to the Trustee, including review and execution of supporting documentation – subject to the Asset Cover Ratio being met.

Testimonials

“We have worked with Prudential for over ten years and have found the service to be flexible and tailored to our needs and strategic goals."

- Social housing provider

“As a new bank entering into the social housing finance sector, we were recommended to use Prudential as our security trustee, as they had a wealth of experience and knowledge about the role and sector. We found the team are helpful and professional and they made us feel at ease with a new and unknown process. The follow up communication remained consistent, pro-active and prompt. We would highly recommend the team and the experience and expertise they provide when appointing a security trustee."

- Social housing lender

“I have worked with the Prudential Trustee team for 20 years or so on housing association charging and funding. The team gel together very well, with their own areas of expertise, working together to provide a seamless service. Their hallmark is speed, they turnaround documents quickly and professionally and give instructions promptly to enable the tightest of deadlines to be met. They review the security documentation and due diligence reports thoroughly, and when required raise the right questions to ensure that the role of the trustee is not compromised, whilst enabling the various beneficiaries and issuers to get on and do business, taking a balanced view between acting commercially and protecting the Trustee’s position."

- Law Firm

To find out more or enquire about our Social Housing Transaction services, contact us.

Contact the team

Alessandra Fumarola

Head of Corporate Trust

+44 (0)20 8162 0493

Tony Petrou

Head of New Business

+44 (0)20 8162 1918

Hamish Carmody

Business Development Director

+44 (0) 20 8162 7418

Daniel Thevathason

Manager, Finance Loan and Escrow Services

+44 (0)20 8162 2557