The new feature works in multiple scenarios and provides developers with certainty of funding whereby Avamore will approve funding for potential planning scenarios from the outset.
It is only applicable to refurbishment projects and does not function as part of the lender’s ground-up offering.
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There are three scenarios where the planning flexibility feature can be applied:
- if the developer has finalised plans for adding an extra storey and submitted the amended planning application, Avamore can offer an additional discretionary facility to the loan agreement — this means further funds can be drawn subject to planning being granted for the enhanced planning scheme
- if the developer is converting a building and intends to submit planning to add another storey — for which they have an estimated build cost for, but no finalised plans — Avamore can include an estimated discretionary facility in the offer for the expected works. To draw this, finalised plans must be approved by the lender and final planning must be granted
- if the developer has been granted planning subject to a S106 agreement being signed and provided by the borrower (which means the formal planning consent may not have been issued and may take time to come through), Avamore can accept that planning has been granted in principle and provide the loan for the full works with the build facility being released at the point which planning is gained in full.
There are no additional fees charged if the developer does not use the additional facility, and pricing is reflective of Avamore’s standard offering.
The feature aims to maximise developer profitability by saving them the time and costs associated with amending the development facility following planning enhancement or confirmation.
Adam Butler, relationship manager at Avamore Capital (pictured above), said: “We have lent on a number of projects that fall into the planning flexibility bracket and it’s great that we are now able to formalise the feature.
“This is another element for brokers to add to their toolbox which speaks exactly to what developers need right now.
“The market is keen to build and Avamore’s feature mitigates the stop-start nature of the process.
“If the enhanced planning is packaged in the initial deal, once planning is approved, we really facilitate the developer’s ability to move at pace.
“Our ethos, approach and products have always been customer-centric, and we hope that this planning flexibility feature demonstrates just that.”