We recently assisted a Borrower with a refurbishment/conversion loan of £864k in South Shields. The Borrower plans to convert the large property, an old sports bar, into four 1-bedroom flats, two 2-bedroom flats, and two 8-bedroom HMOs.

The purpose of the loan is to provide a Day-1 equity release and cover 100% of the development costs for the property’s conversion. The Borrower is an experienced Developer with a strong track record of converting properties to HMOs and flats. They also have local experience and were running several HMO properties in the vicinity.

The Borrower plans to retain the units in their property portfolio and exit our loan via BTL/Term Debt Finance.