The two-bedroom mid-terrace house had permission to be refurbished into a four-bedroom property under permitted development rights.
The developer has made plans to strip out and extend the building as well as undertake additional structural works.
The loan was closed at 66 per cent loan to gross development value (LTGDV) at a rate of 8.5 per cent per annum and the project has an expected gross development value (GDV) of £1.05m.
Avamore worked with commercial finance brokerage Totum Finance to complete the deal and accommodate delays the developer experienced due to the speed at which the previous owner was moving out of the property.
Chris Treadwell, relationship manager at Avamore, (pictured) said: “This was a good deal to get over the line. As we phase out of the Covid-19 crisis, we want to demonstrate our appetite to lend against development projects and that we remain competitive.
“We were pleased to be able to support the borrower and work with Piragsah from Totum Finance once again. As always, there were time constraints which needed to be met and the Avamore team worked hard to get the deal done.”
Piragash Sivanesan, founder of Totum Finance, added: “I’ve worked with Avamore on several transactions and their service has been consistent on every deal.
“The front end of the process was quick and straightforward which meant that we were all able to turn our attention to the intricacies of the transaction.
“As ever, the underwriters were always available and responsive; they remained transparent on the deal’s progress and worked closely with us to navigate around any challenges.”