LHV Bank has completed a 5-year fixed rate buy-to-let (BTL) facility to refinance two residential properties leased to a social housing charity, enabling the release of equity to support the acquisition of further sites.
The properties, located in Wallasey and Birkenhead, were acquired and refurbished by Vital Homes, a property development group established in 2022 by James Levy, CEO, and Elena Pashevkina, COO.
Within its first year, Vital Homes built a portfolio worth £6.5m, focused on housing vulnerable tenant groups including prison leavers, domestic abuse survivors and people with disabilities.
Properties are refurbished and leased to local authorities or charity partners, providing accommodation and stability for those transitioning to independent living.
The LHV Bank facility refinanced bridging loans used to acquire and convert two houses in multiple occupation (HMOs), both now under long-term leases to a registered charity.
The borrowers required longer-term funding that reflected the stability of their leasing arrangements and provided equity to continue their growth plans.
This transaction marked LHV Bank’s first direct loan in the social housing space.
Edwin Yamoah, lending director at LHV Bank, led the deal, and the facility moved from credit approval to drawdown in 31 calendar days, helping the client avoid a further month of bridging interest.
The deal team worked with a specialist valuer outside of the standard panel and was able to lend against market value despite a higher loan to vacant possession value than would usually be accepted.
The case followed LHV Bank’s £5m commercial real estate facility to refinance two specialist care home assets, also supporting a charitable operator in the supported living sector.
Yamoah said: “We were impressed by the impact Vital Homes is making through its partnerships with local authorities and charities.
“These are exactly the sorts of deals we want to support. Specialist housing models that fall outside the norm but are underpinned by strong operators and long-term income.
Elena Pashevkina, co-founder and COO at Vital Homes, added: “There’s often a disconnect between what communities need and what traditional property finance is set up to support.
“That’s why working with a lender who sees the bigger picture is so important.
“LHV Bank brought insight, pragmatism and pace, and their backing sends a strong signal about what the future of socially responsible housing finance could look like.”
James Levy, co-founder and CEO at Vital Homes, said: “Our focus has always been on delivering high quality homes for those most in need, and LHV Bank understood that from the first conversation.
“They didn’t try to force our model into a standard box, but took the time to understand how we work and were practical throughout.
“Having that level of flexibility and responsiveness from a lender makes all the difference.”
Conor McDermott (pictured), director of SME Lending at LHV Bank, said: “We’re increasingly working with borrowers who want to move away from speculative growth strategies and instead focus on assets that offer reliable cash flow, development upside, or long-term social value.
“In that context, our partnership-led approach really comes into its own.
“We’re here to offer support that’s grounded in the real world, and to move quickly when a deal deserves it.”
