Avamore Capital completes £945k refurbishment loan for former guesthouse redevelopment
The specialist lender said the facility will fund the refurbishment of the property, enabling the borrower to unlock its development potential.
Avamore Capital has completed a £945k refurbishment loan to support the redevelopment of a former guesthouse into a house of multiple occupancy (HMO).
The specialist lender said the facility will fund the refurbishment of the property, enabling the borrower to unlock its development potential.
The transaction encountered a planning delay shortly before completion after the planning decision was pushed back by a month.
To avoid delaying the purchase, Avamore completed the loan based on the property’s commercial value, providing the required day-one funding before agreeing to increase the facility once planning permission had been granted.
The lender said the deal required a detailed assessment of the property’s existing use, as it had previously operated as a bed and breakfast.
Avamore added that close communication between the borrower, broker and professional advisers helped keep the transaction on track.
Aidan Lesslie (pictured), relationship manager at Avamore, said: “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.
“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: “This 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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