£1M Heavy Refurbishment– Derby

Overview

Acre Lane Capital supported a borrower with a £1.03 million loan facility to refinance existing development debt and fund the completion of Phase 1 of a residential scheme in Derby. The project involves the refurbishment and conversion of a former social club into eight self-contained apartments, forming the first phase of a wider 32-unit development.

Structured at 80% Loan-to-Cost (LTC) and 68% Loan-to-Gross Development Value (LTGDV), the facility provided the borrower with a clear, focussed funding solution—giving them the capital to finish construction and the flexibility to control the future of the wider scheme.

The Challenge

The borrower needed to refinance their existing loan and secure funding to complete works on an existing building already at first-fix stage. The goal was to complete Phase 1 efficiently, without being locked into a commitment to fund or start the larger Phase 2 (three new-build blocks totalling 24 units). They needed capital, speed, and control.

Our Solution

Acre Lane Capital structured a £1.03 million loan, including an initial drawdown to fully repay the previous lender, alongside staged drawdowns aligned with the refurbishment milestones. This allowed the borrower to complete the 8-unit Phase 1 development at their own pace, while retaining full optionality on when to move ahead with Phase 2.

The Outcome

✔ Full refinance of the original lender
✔ Refurbishment finance matched to build progress
✔ Project focus narrowed to Phase 1 for speed and clarity
✔ Borrower freed from pressure, able to complete and sell on their own terms

Why This Matters

This facility shows how we deliver smart, flexible funding tailored to the shape and pace of real developments. By splitting the scheme into phases and funding only what was needed now, we helped the borrower de-risk the project, retain control, and finish strong—with no unnecessary lender pressure.