Avamore Capital has provided a £935,500 refurbishment and conversion facility to a repeat client for a residential property project. The loan was structured to allow the borrower to proceed with works while planning approval for a loft conversion remained pending.
The transaction was handled by Adam Butler, director of sales and marketing at Avamore Capital, and Saif Ali Khichi, underwriter. The facility was designed to provide maximum leverage from the start, enabling the borrower to allocate capital across the project.
Planning uncertainty addressed
A key aspect of the deal involved structuring the loan to allow the main refurbishment and conversion works to begin before planning approval for the loft conversion was finalised. This approach prevented delays to contractor schedules and the overall project timeline.
The borrower’s previous transactions with the lender facilitated the credit assessment process, according to Butler. “By structuring the facility creatively, we ensured our client could move forward immediately rather than waiting on planning, which can often stall progress and increase costs,” he said.
Khichi noted that the underwriting approach balanced the planning uncertainty with risk management. “The strength of the client’s track record gave us confidence in the delivery of the scheme, and by taking a structured and controlled view on the pending loft planning, enabled us to mitigate risk while still providing meaningful leverage,” he said.
Repeat borrower advantage
The existing relationship between lender and borrower allowed for faster decision-making, with previous project experience providing insight into the borrower’s delivery capability. This familiarity supported the credit assessment process and contributed to the transaction’s completion timeline.
The deal demonstrates how specialist property lenders are structuring facilities to accommodate planning uncertainties while maintaining lending standards. The approach allows borrowers to maintain project momentum in cases where planning decisions may otherwise delay funding and construction schedules.
