Light Refurb Completion

Posted by Avamore Capital on 27th April 2021 -

Avamore Capital has funded a £758,046 Light Refurbishment in Maidenhead at a rate of 8.5% p.a. The borrower plans to convert the 5-bedroom house into its original form of 2x 3-bedroom properties.

The developers, who both previously worked at CARLA homes, have strong market experience as a site manager and quantity surveyor respectively; this was the first project that they were leading as developers. Considering their backgrounds, and understanding of development projects, Avamore was able to offer standard terms of 8.5% p.a. and good leverage. Later in the process, there was, however, a slight down valuation of the site which had the potential to impact the overall deal structure. Nevertheless, Avamore, felt comfortable with the strength of the scheme and so, adjusted to leverage up to 69% LTGDV to cover the change in valuation and ensure consistency with the original loan amount offered.

The deal was structured as a light refurbishment (which incorporates a build facility) however, the site was awaiting a Letter of Lawful Development to confirm that the property had permission to be reconfigured back into its original form of two properties. The current scheme is recognised by the council as one property. Avamore acted in the best interests of the borrowers and worked to save them time and money in the long term; typically, the expectation would be to take out a Bridge in the first instance, wait for the Lawful Development to come through and then proceed onto a refurbishment product. Avamore, considering the scope of works planned and taking care to understand the likelihood of Lawful Development being granted were confident to offer the refurbishment deal. The deal was also structured in such a way that it can be adjusted to reflect a bridge facility in the unlikely event that appropriate permissions are not granted.

The broker commented: “I was impressed with the whole process from start to finish, it was quick and effortless. Avamore were communicative with the client and I. There were a couple of issues along the way but Avamore's proactive attitude ensured that they dealt with and overcame them quickly. I will be using Avamore again.”

Adam Butler, Relationship Manager commented: “It was great pleasure to work with the broker and the borrower on this unique deal. It really highlighted our core strength of being customer focused and ensuring that we continue to be adaptive which, in turn, resulted in us getting a strong deal structured. The Credit Analysis and Underwriting teams worked brilliantly with the borrower and broker in communicating and keeping them in the forefront of their minds when making decisions. Being as dynamic as the Avamore team was is so important, especially in the current climate.”