The site was secured and planning approval obtained for the scheme consisting of four apartments in a HMO block.

The total value of the development, upon practical completion, is £1.77m GDV — with the 19 units expected to generate a gross rental income of £145,000 p.a.

Upon the completion of the construction phase, the developer sought to transition from their existing development finance loan to a more cost-effective loan, but delays in construction resulted in the rapid approach of expiration of the development finance term within 10 weeks.

•   Property investors face 'huge risk' of stranded assets if they fail to decarbonise
•   AJC Group submits outline planning application for Poole redevelopment
•   Volume Property wins planning appeal for affordable homes in Birmingham

Merryoaks secured the loan quickly after recognising the developer's desire to retain these units for both short-term income and long-term capital growth, and ensured the developer avoided any late penalties, extension fees, or default interest rates that may have been incurred otherwise.

Saam Lowni, managing director at Merryoaks (pictured above), commented: “We are proud to have played a pivotal role in supporting the developer's vision, providing it with a seamless transition from a multi-unit development loan to a significant term loan.

“We look forward to seeing the end result and, hopefully, working with the developer again in the future.”

Chris Daly, managing director at Hampshire Trust Bank, added: “This scheme strongly aligns with our purpose of championing property investors and housebuilders, to provide more homes through our introducer partners.

“We look forward to supporting Merryoaks on more deals in the future.”