The property is a part-complete two-storey former office building with a GDV of just over £3.9m.
The borrower had previously completed two similar refurbishment projects and needed the additional funds for the remaining build of 21 one-bed apartments.
The client had taken a bridging loan to purchase the property and arranged to refinance onto a straightforward development finance facility earlier in the year.
However, due to the Covid-19 crisis, the original development lender pulled out of the transaction, which meant the borrower had to self-fund the initial project works.
To fund the rest, Avamore, the borrower and the broker from Vincent Burch, needed to work closely to ensure that the transaction ran as smoothly as possible and, as there had been no monitoring surveyor on the project to begin with, communication was key.
Successful completion relied on the organisation of the borrower, his ability to demonstrate costs incurred so far, and his willingness to be transparent around the project to date.
Avamore provided terms quickly and organised the survey within one week.
The borrower was represented by Notary Express, Avamore was represented by Fieldfisher, and the valuation was undertaken by Kempton Carr Croft.
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The monitoring surveyor was Pride Consulting IMS.
The £2.1m loan was provided on a 12-month term and, including underwriting, took four weeks to complete.
“Dealing with Avamore from start to finish has been a great journey,” a spokesperson from Vincent Burch commented.
“While other development lenders were holding back, Avamore stepped up and expressed an appetite to lend which was a godsend for my client who had been stuck on a bridge through the pandemic.”
“I was supported throughout the application in obtaining the necessary documents to advance.
“The legals were prompt and the case completed in good time.”
The deal was Adam Butler’s (relationship manager at Avamore, pictured above) first at the lender.
“It was great to work with the team at Vincent Burch on my first transaction at Avamore; they were highly organised, efficient and were clearly acting in the interest of the customer.
“Our part-complete funding product is crucial right now given the unexpected circumstances many developers have had to face as a result of the UK lockdown.
“We look forward to helping many more borrowers and brokers that are tackling problems driven by the pandemic.”