Avamore Capital has announced the completion of a £1.2m part-complete project in Surrey.

The property, a two-storey detached house, is in the process of being converted into 3x2 bed and 2x3 bed flats, and Avamore revealed the completed scheme will have a GDV of £1,955,000. The loan has been issued for 12 months and has an LTGDV of 60.3%.

Avamore suggested the borrowers had “significant experience” having completed similar part-complete conversion schemes in the past so were in a good position to take over the development, which was not yet “watertight”.

The loan provider also stated that the funds will be used to finance both the purchase of the site and the remainder of the project’s development.

S-M & Daughters Limited and B-IT FIN director, Richard Sullivan, commented: “This scheme is a part-complete development, that we had valued in the thick of this pandemic. Added to the fact that building control and others had literally shut up shop, I felt this case would never complete.

“But thanks to the tenacity and hard work of the guys at Avamore we have a structured deal for our client that adds real value to their project. I introduced Avamore as a funding partner to my client, not a lender, and I believe that is exactly what this project needed.”

Avamore head of underwriting, Philip Gould, added: “We are incredibly pleased to have completed this transaction. As expected, we have had to remain cautious in our lending approach in recent months but the borrower’s experience and hands on approach reassured us of the strength of this particular scheme and his ability to deliver it.

“All parties involved worked tirelessly to overcome the challenges we faced and completing this scheme during the current circumstances definitely feels like a notable accomplishment.”

Share Story: