Avamore Capital has provided £458,000 in development finance for the acquisition and refurbishment of a probate property with unregistered land, arranged through broker Aureum Finance.
The transaction involved multiple complexities, including the purchase of an unregistered probate asset, which required coordination between legal teams and the lender to meet regulatory requirements. The funding will support a comprehensive refurbishment before the developer pursues planning permission for a larger extension.
The borrower plans to request a variation to the facility once full planning permission is secured, allowing the project to progress to its next phase. According to Avamore, the developer had previously completed another development funded by the lender, which influenced the decision to support this transaction.
Probate property financing
Kyle Humphries, broker at Aureum Finance, said: “This transaction highlights the value of working with a lender that can adapt to complex circumstances and provide practical solutions where others may struggle. Avamore’s flexible approach, commercial mindset and ability to move quickly made all the difference in delivering the right outcome for our client.”
Adam Butler, sales and marketing director at Avamore, commented: “Every development project has its own requirements, so it’s important that the funding solution reflects that. In this case, we were able to structure a refurbishment facility that not only met the borrower’s immediate needs but also provides the flexibility to support the next phase of the scheme once planning permission is secured.”
The deal comes as the UK new homes market faces profitability challenges, with developers seeking alternative finance structures. Josh Rowe, transactions and structuring analyst at Avamore Capital, worked with all parties to navigate the legal complexities associated with the probate purchase and unregistered title.
Mohammed Azram, relationship manager at Aureum Finance, coordinated the transaction from initial enquiry through to completion. The transaction demonstrates the specialist finance market’s capacity to support complex property acquisitions, particularly where legal and compliance requirements present challenges for traditional lenders.
The loan structure allows for potential expansion of the facility subject to planning approval, reflecting a trend in development finance towards flexible arrangements that accommodate project evolution.
