“Despite the complexities around the legal structure and the borrower being new to development, we were able to structure a solution that provided strong leverage from day one, including an equity release to support cash flow”
– George Ormerod – Avamore Capital
Avamore Capital has completed a £1.05m refurbishment and conversion finance facility for a first-time property developer, structured over a 15-month term at 70% LTV with an equity release at drawdown.
The borrower, an entrepreneur making their first move into property development, will use the funding to carry out a comprehensive refurbishment and conversion of the site. The equity release provided immediate access to capital, allowing the project to progress without delay from the outset.
The deal carried several layers of complexity. A part transfer of the site away from the borrower’s main residence required careful legal structuring, compounded by the borrower’s lack of prior development experience. Avamore navigated both through its underwriting approach and track record in structuring bespoke lending solutions.
“This was a really interesting deal that highlights our ability to support clients entering the development space from other industries,” said George Ormerod, relationship manager at Avamore Capital (pictured).
“Despite the complexities around the legal structure and the borrower being new to development, we were able to structure a solution that provided strong leverage from day one, including an equity release to support cash flow. It’s a great example of how we back entrepreneurial clients with a clear vision.”
Saif Ali Khichi, underwriter at Avamore Capital, offered further details on how the team assessed the borrower’s profile. “From an underwriting perspective, this deal required a detailed review of both the asset and the borrower’s background,” he said.
“While the client was a first-time developer, their commercial experience as an entrepreneur gave us confidence in their ability to deliver. Navigating the part transfer and ensuring the structure worked for all parties was key, and we’re pleased to have completed a deal that reflects our pragmatic and solutions-driven approach.”
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