The borrower purchased the site — which consisted of a vacant plot of land — in October 2022 with their own equity.

They obtained planning permission to construct five, three-bedroom bungalows with a forecasted GDV of £1.45m once complete.

The one-year deal represents Avamore Capital’s growing appetite in the North, as the lender continues to actively increase its presence across all regions in England.

While this is the borrower’s first development project, they currently hold an extensive BTL portfolio demonstrating a strong financial foothold.

They have also employed an experienced third-party main contractor to manage the build.

When the borrower first approached Avamore, four of the five bungalows had foundations complete, and the fifth property was at concrete pour only.

All of the works completed to this stage had been fully self-funded; the borrower was keen to start the project, deploying their own cash as soon as planning was granted and later understanding the benefits of having additional financial support from a specialist lender.

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They then decided to concurrently secure finance on top of the equity portion to take the project to completion.

The borrower was able to utilise Avamore’s part-complete development product which offered funding for 100% of the remaining works.

The lender was able to complete the deal from the acceptance of the formal offer at pace, considering the additional investigation required for a project midway through the build.

Sophia Lee, relationship manager at Avamore Capital (pictured above), commented, “We were able to take on an early-stage part-complete development and draw upon our expertise to ensure that the borrower is now in a position to effectively complete the development, after investing a large amount of their own time and money.

“During a period of market flux, this is when specialist lenders can truly demonstrate their value, supporting strong borrowers to see their project plans through.”

Nick McLean, associate director at LDN Finance, added, “It was a pleasure to work with the team at Avamore on this deal.

“The underwriting process was very proactive which enabled the deal to flow through to completion quickly.”