The property is a two-storey detached house that is in the process of being converted into three two-bed and two three-bed flats. The completed scheme will have a gross development value (GDV) of £1.95m.
The loan has been issued for 12 months and has a loan to gross development value (LTGDV) of 60.3 per cent.
The funds will be used to finance both the purchase of the site and the rest of the development.
Every flat will have access to a communal garden and off-street parking and the borrowers has previous experience with other part-complete conversion schemes.
Avamore worked with building control to ensure the works completed to date were satisfactory and communication was maintained between the borrower and the brokerage, S-M & Daughters.
Richard Sullivan, director of S-M & Daughters, said: “This scheme is a part-complete development, that we had valued in the thick of this pandemic. Added to the fact that building control and others had literally shut up shop, I felt this case would never complete.
“But thanks to the tenacity and hard work of the guys at Avamore we have a structured deal for our client that adds real value to their project. I introduced Avamore as a funding partner to my client, not a lender, and I believe that is exactly what this project needed.”
Philip Gould (pictured), head of underwriting at Avamore, added: “We are incredibly pleased to have completed this transaction.
“As expected, we have had to remain cautious in our lending approach in recent months, but the borrower’s experience and hands–on approach reassured us of the strength of this particular scheme and his ability to deliver it.”