Avamore Capital has announced that it has completed a £945k refurbishment loan to support the redevelopment of a former guesthouse into a house of multiple occupancy.
The facility provides the borrower with the funding to refurbish the guesthouse and unlock its development potential. The transaction showcased Avamore's ability to navigate complex lending scenarios while maintaining momentum towards completion.
One challenge emerged shortly before completion, when the planning decision was delayed by a month. To avoid holding up completion, Avamore carried out a commercial valuation and lent against the commercial value, funding the day one amount required.
The lender then agreed to increase the funding once planning had been granted, allowing the transaction to complete successfully. The deal required careful consideration of the property's existing use value, given it had previously operated as a bed and breakfast.
Clear and consistent communication between all parties was instrumental throughout the transaction, helping to resolve challenges efficiently and keep the deal progressing.
"It was a pleasure working on this case with all professionals involved. With changes needed on the loan structure throughout the underwriting process due to planning approval delays," said Aidan Lesslie, relationship manager at Avamore (pictured).
"We worked closely with the borrower and broker to ensure all parties were aiming to reach the same goal and able to meet the completion deadline needed to secure the site for the borrower.
"I am pleased that we also have another case sent from the same borrower showing that a strong relationship has been made and all efforts to secure this site have not gone unnoticed, further strengthening our relationship with the broker and borrower."
Zahrah Mudasiru, underwriter at Avamore, added that the transaction required a detailed assessment of the property's existing use and a considered approach to valuation. "By working closely with our professional advisers, we were able to establish a robust lending position while maintaining the speed and certainty our client required.
"It's a great example of how strong underwriting and teamwork can deliver successful outcomes on more complex cases."
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