The principal lender worked over a 12-month period to complete the deal after the client was referred to Avamore by another lender which was unable to take on the scheme in October 2018.
Avamore managed to resolve a legal issue on the seller’s side, which could have prevented the borrower from being able to develop the land.
Avamore also introduced the borrower to a mezzanine lender to enable them to reduce its equity.
The scheme has been granted planning permission for the development of three, four-bed detached houses with a GDV of around £1.55m.
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“Given this was a ground-up development in an already built-up residential area, we were aware of the legal intricacies we would have to work through,” said Philip Gould, senior underwriter at Avamore Capital (pictured above).
“Although we did encounter a few issues during the underwriting process, this was always a borrower and a transaction that we wanted to support.”
The borrower, David James, managing director at Blackthorn Homes, added: "This was the first time I had worked with Avamore Capital, and the experience was fantastic.”