£1.26M Property Refinancing & Development – Surrey
We successfully provided a £1.26 million property refinancing and development loan for the conversion and new-build development of a former public house into residential homes in Surrey.
Overview
We successfully provided a £1.26 million property refinancing and development loan for the conversion and new-build development of a former public house into residential homes in Surrey. This deal highlights our ability to finance complex heritage redevelopment projects, supporting both refinancing and 100% of remaining build costs to facilitate a seamless transformation.
The Challenge
The borrower required funding to redeem an existing bridge loan and finance the construction of two additional new-build residential units alongside the refurbishment of a Grade II listed former public house.
Key challenges included:
– Navigating listed building consent and full planning requirements.
– Funding a mix of conversion and ground-up development.
– Ensuring a smooth exit via the sale of the completed homes.
Our Solution
We structured a 14-month loan with a combination of initial and staged drawdowns to match the project’s construction schedule:
✅ Initial Drawdown: £300,000 to redeem the existing loan.
✅ Staged Drawdowns: £851,450 to fund 100% of remaining build costs.
✅ Rolled-Up Interest: Providing cash flow flexibility during construction.
✅ Optimized Leverage: Day 1 Net LTV: 36%, Gross LTC: 84% and Gross LTGDV: 60%
The Outcome
🔹 £1.26M facility secured with structured funding.
🔹 Conversion of a listed building and development of two additional homes.
🔹 Projected GDV of £2.1M, demonstrating strong value creation.
🔹 Exit via the sale of completed properties, ensuring a clear repayment strategy.
Why This Matters
This transaction highlights our expertise in listed building and heritage redevelopment funding, structuring tailored financial solutions that allow borrowers to unlock the potential of unique assets. By providing a full build facility alongside refinancing, we enabled a seamless transition from planning to project completion.
If you’re looking for bespoke financing solutions for property acquisitions, refurbishments, or heritage developments, get in touch with our team today.