LendInvest has provided a refurbishment facility exceeding £900,000 for the acquisition and conversion of a semi-commercial property in Buckhurst Hill, Essex. The 18-month loan will fund the transformation of the site into a mixed-use development with a gross development value of £1.5 million.
The facility was arranged through broker Nascot Advisory for a developer with an existing lending relationship with LendInvest. It marks the first transaction Nascot Advisory has placed with the lender.
Development structure
The project involves constructing a double-storey rear extension and converting a detached rear building, expanding the site’s total gross internal area to 329 square metres. Upon completion, the development will comprise a ground-floor retail unit, two duplex apartments, and a standalone two-bedroom bungalow.
LendInvest structured the financing as a day-one net loan of £417,000 at 70% loan-to-value, alongside 100% coverage of the £358,000 construction budget. The overall package represents a 59.52% loan-to-gross development value ratio.
Exit strategy and market context
The borrower intends to refinance the residential element onto LendInvest’s buy-to-let products upon completion, whilst retaining the option to sell the commercial unit separately. The strategy reflects broader trends in the buy-to-let sector, which has experienced shifts in investor activity amid changing market conditions.
The transaction was completed in 38 days, according to Vishal Dixit, managing director at Nascot Advisory, who noted the lender’s understanding of share purchase acquisitions and heavy refurbishment elements.
Michael Minnie, head of bridging sales at LendInvest, said the lender’s Refurb GDV product calculates the loan limit against a property’s gross development value rather than its current value, providing day-one capital for acquisition or refinance alongside staged funding covering construction costs.
The financing structure comes as mortgage costs continue to fluctuate following recent interest rate movements, affecting both development finance and exit strategies for property investors.
