This scheme was a part-built development of 25 units – 1x studio, 13x 1-bedroom, 5x 2-bedroom, 2x 3-bedroom and 4x 4-bedroom apartments in Mitcham.
Works commenced on the project in early 2022 and were self-funded, with the construction procured on a self-build basis. After the project had been going on for eight months, in August 2022 the borrower decided to refinance whilst the scheme was part complete. At this time, the build was well-progressed, however, given market conditions over the next year, they were faced with cost overruns alongside unexpected delays to construction.
By August 2023, the project was wind and watertight with all external works nearly complete however, the existing lender was unable to refinance or extend the loan for the borrower to close off final works.
Avamore offered funding for 100% of the remaining works in addition to refinancing the existing loan. We were also able to offer the borrower an advance construction drawdown on Day 1 of the loan for invoices and works certified as complete by the monitoring surveyor between the time of their initial report and completion. Finally, we offered the borrower a longer term which allows them to not only complete the works but gives them extra time to exit via sale.
Once completed, the value of the site will be £10,590,000.