Avamore Capital completes £500k refurbishment loan
Avamore Capital has closed a c£500k refurbishment scheme in Fazeley; the deal was completed shortly after the Easter Bank holiday despite the practical challenges that are currently being faced.
The former Victorian Methodist Church which sits on a canal-side location will be converted into 5 apartments comprised of 1×1 bedroom and 4×2 bedroom units. The scheme is expected to take around 12 months to complete and the units will all qualify for the government backed Help-to-Buy scheme. The property has an expected GDV of c£800k.
Careful consideration had to be applied to the term and the implications if construction is not be possible in the months ahead. Whilst there were a number of new challenges to address, Avamore Capital remained flexible whilst also maintaining a safe approach to ensure security of the loan and maintaining the well-being of all those involved.
The borrower meeting and site visit was conducted via video call, something which has not been done before and in a similar way Avamore Capital allowed the borrower to receive its independent legal advice, which is normally conducted face to face, via a video link under Mercury rules. A further difficulty came from not being able to receive original signed documents ahead of completion, a usual requirement for the lender which was waived and replaced by solicitor certified copies that would allow for registration.
Chris Treadwell, Relationship Manager, Avamore Capital, commented:
“We were incredibly pleased to close this transaction, particularly considering the current circumstances. We’ve been in lockdown for a few weeks now and it was important to us that we didn’t rush anything; the borrower and broker were incredibly understanding of the fact that we needed to identify new processes which are as secure as our usual approach to transactions.
There were lots of unexpected changes along the way because of the unusual circumstances, but we all worked closely together to navigate the challenges. Communication is key at the moment and successfully closing a deal at this stage is testimony to that. I am glad that we were able to deliver for the broker and the borrower.”