Avamore Capital completes £763k part complete development loan

By Bridging Loan Directory 23rd June 2023

Avamore Capital has completed a £763,403 part complete development loan with LDN Finance in Manchester.

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 £1,450,000 once complete.

The 12 month 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 will be the borrower’s first development project, they currently hold an extensive Buy-to-Let portfolio demonstrating a strong financial foothold.

They have also employed an experienced 3^rd party main contractor to manage the build, putting Avamore in a comfortable position.

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.

Later understanding the benefits of having additional financial support from a specialist lender, they then decided to concurrently secure finance on top of the equity portion put in 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.

While the scheme was in its very early stages, Avamore Capital was able to rely on their experienced underwriters and commercial approach to assess works done to date.

Nick McLean, Associate Director at LDN Finance commented:

“As always, it was a pleasure to work with the team at Avamore on this deal.

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

Sophia Lee, Relationship Manager at Avamore Capital commented:

“This deal truly demonstrates Avamore at its best.

We were able to take on a very 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.”