Blend Network

Blend lends £2.6m for Gloucester refurbishment scheme

Blend Network has completed a £2.6m loan for a property developer looking to acquire and refurbish 10 historical properties and 14 lock-up garages in Gloucester city centre.

The 74% LTGDV facility, agreed over a 21-month term, will enable the client to convert the existing units into a mix of modern studio flats, one- and two-bedroom apartments and individual en-suite rooms.

Yann Murciano, CEO at Blend Network, said: “This project is a clear example of how specialist lenders can play a key role in helping tackle the housing crisis by supporting property developers who refurbish and revamp empty properties for residential use. 

“With banks and traditional lenders having lost their appetite for development finance, specialist development finance lenders, like Blend Network, have an acute responsibility to support SME property developers who are building the homes the country desperately needs.”

Paul Watson, head of lending at Blend Network, added: “The ongoing housing crisis and lack of cheap housing has been aggravated by a crisis in affordability. 

“It is no secret that house prices have risen quicker than earnings over last year, resulting in an increase in the cost of servicing a mortgage relative to take-home pay. 

“According to Nationwide, high house prices relative to average earnings continues to make raising a deposit a significant barrier for first-time buyers. 

“As a result, we have seen a sharp increase in demand from professionals for high-end HMOs and studio apartments that sit within smartly designed co-living spaces. 

“This is exactly the market that this scheme in Gloucester is targeting, and the results speak for themselves. 

“We are very proud of the work done by the developer behind this project and look forward to continue supporting them in their future schemes.”

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