The funding has enabled the developer to build a new three-storey house (pictured above) with a projected GDV of over £500,000.
The developer had previously faced a dilemma.
Although the site included a recently refurbished house next to an adjacent plot with planning consent for a new dwelling, the client was unable to refinance the existing property on to a buy-to-let mortgage and continue development.
Avamore advised the client to transfer the parcel of land into a new company, which would allow the company to be treated as a new borrower.
This would then allow the existing house to be refinanced onto a term loan.
- Avamore funds Methodist church conversion
- Avamore provides £750,000 facility for project without planning permission
- Artefacts dating back to Stone Age found on development site
The facility provided by Avamore will be for a term of 15 months and was drawn without a valuation being prepared and without a monitoring surveyor’s report.
The client was introduced to Avamore by Pioneer Finance, while David Powell of TWM Solicitors represented the lender in the deal.
Zuhair Mirza, principal at Avamore Capital, said: “We are delighted to be working with our customer on his second development.
“The type of property he is looking to develop is exactly the sort needed for this local market and we expect the demand to be strong.
“Avamore [is] willing to consider relatively small developments and takes a pragmatic approach in assisting customers to address any challenges.”