Launched in February, the new product is lent against a borrower’s gross development value (GDV) to provide more leverage for the developer and reduce the capital needed up front.

In its first case, LendInvest provided funds for a borrower looking to convert a workshop into a residential unit for sale.

The area had seen a number of properties undergo similar conversions that were subsequently sold, indicating strong demand.

Upon completion of the refurbishment, the property will be a two-storey house with three bedrooms and is expected to be sold for around £375,000.

The loan was based on 70% GDV over nine months at a rate of 1.1% per month.

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•   A guide to refurbishment finance
•   LendInvest launches GDV-based refurb product

Matthew Tooth, chief commercial officer at LendInvest (pictured above), said: “It is brilliant to see our first refurbishment deal closed for a Scottish developer following our expansion into the region at the end of last year.

“Demand for refurbishment finance in the region is high, and this project is a good example of a quick project that can turn disused properties into the housing that is so drastically needed.”

LendInvest worked with the borrower to customise how the works were monitored in order to ensure the project ran smoothly from the offset.

The company also offers a longer loan term of 18 months for borrowers who need more financial flexibility if the project requires an extended completion time.

The refurbishment loan is one of a number of recent new products from LendInvest, with the company having launched both auction finance and pre-construction offerings since December 2016.