Avamore Capital has supported a developer in Ilford, Essex by providing a development facility of just under £200,000. This facility has enabled the developer to create a new, 3-storey house with an anticipated GDV in excess of £500,000.
The developer was previously faced with a central challenge. Although the property had the benefit of a recently refurbished house plus an adjacent plot with planning consent for a new dwelling, crucially the customer could not refinance this existing property onto a buy-to-let mortgage and continue development. A buy-to-let lender would not have been able to finance the build and might prohibit any development at the property under the terms of their loan.
Avamore’s solution was for the borrower, an existing customer, to transfer the parcel of land into a new company, the resulting company becoming Avamore’s new borrower. Accordingly, this would free the existing house to be refinanced onto a term loan.
The facility provided by Avamore will be for a term of 15 months. Additionally, the loan was also drawn without a valuation being prepared and no monitoring surveyor’s report was required.
“Many thanks to Avamore once again for their help in resolving this situation for me. I am looking forward to progressing my build and delivering another much needed family home in this area. Additionally, being able to refinance the existing house from bridging finance onto a buy-to-let is going to make a big difference for me”.
Zuhair Mirza, Principal of Avamore Capital stated:
“We are delighted to be working with our customer on his second development. The type of property he is looking to develop is exactly the sort needed for this local market and we expect the demand to be strong. Avamore are willing to consider relatively small developments and take a pragmatic approach in assisting customers to address any challenges.”
Pioneer Finance introduced the business to Avamore Capital:
David Powell of TWM Solicitors represented Avamore Capital in the facility