The completed development will have a GDV of £1.95m and the loan has been issued for 12 months with a LTGDV of 60.3%.
The property is a part-complete two-storey detached house that is being converted into three two-bedroom and two three-bedroom flats.
The funds will be used to finance both the purchase of the site and remainder of the project’s development.
The borrower had significant experience in completing similar part-complete conversion schemes, putting them in a good position to take over the development, which is not yet wind or watertight.
There was comfort for the lender in the strength of the underlying asset and the liquidity of the completed units.
It worked closely with building control to ensure that all the works to date were satisfactory and, given the tight timeframes, maintained close communication with the borrower and broker.
Avamore said it also managed multiple processes in parallel to deal with the outgoing and incoming service providers working on the project.
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Richard Sullivan, director at S-M & Daughters Ltd and B-IT FIN, commented: “This scheme is a part-complete development, that we had valued in the thick of this pandemic.
“Added to the fact that building control and others had literally shut up shop, I felt this case would never complete.
“But thanks to the tenacity and hard work of the guys at Avamore, we have a structured deal for our client that adds real value to their project.
“I introduced [them] as a funding partner to my client, not a lender, and I believe that is exactly what this project needed.”
Philip Gould, head of underwriting at Avamore (pictured above), added: “We are incredibly pleased to have completed this transaction.
“As expected, we have had to remain cautious in our lending approach in recent months but the borrower’s experience and hands on approach reassured us of the strength of this particular scheme and his ability to deliver it.
“All parties involved worked tirelessly to overcome the challenges we faced and completing this scheme during the current circumstances definitely feels like a notable accomplishment.
“We look forward to continuing with our tailored approach to lending as the market continues to normalise over the coming months.”