The facility provides the borrower with the funding to refurbish the guesthouse and unlock its development potential.

One challenge in the process emerged shortly before completion when the planning decision had been delayed by a month.

In response, Avamore was able to complete on the loan in time by carrying out a commercial valuation and lending against the commercial value so as to not delay the completion and fund the day one amount required.

Avamore then agreed to increase the funding amount once planning had been secured, allowing the transaction to complete.

The deal required careful consideration of the property's existing use value, as the property had previously operated as a bed and breakfast.

"With changes needed on the loan structure throughout the underwriting process due to planning approval delays,” said Aidan Lesslie, relationship manager at Avamore (pictured above).

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“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."