“By taking a joined-up view and using additional security, we helped the borrower access 100% funding without the complexity of multiple facilities”
– Gavin Diamond – Inspired Lending
Inspired Lending has agreed a £2m facility to support the acquisition and residential conversion of a vacant commercial building in Nottingham.
The borrower plans to transform the site into six HMOs, each with six bedrooms. The works budget of £900,000 will be released in tranches throughout the project. The facility was structured to provide 100% funding for both the purchase and development elements.
The initial loan advance was set at 70% of the property’s current market value. The overall facility has a loan-to-gross-development value (LTGDV) of 65%. To enable full funding, Inspired Lending secured a second charge over three additional properties held personally by the borrower’s directors and shareholders.
The transaction was introduced by a broker representing a client who had initially intended to raise funds through multiple bridging loans with various lenders. Inspired Lending instead consolidated the requirement into a single facility.
“By taking a joined-up view and using additional security, we helped the borrower access 100% funding without the complexity of multiple facilities,” said Gavin Diamond (pictured), CEO of Inspired Lending. “It’s an approach grounded in common sense, driven by experience, and delivered with speed, clarity and honesty. That way of working has helped us steadily grow our presence in one of the fastest-moving and most competitive parts of the property lending market.”
The borrower intends to refinance the completed development and retain it within their investment portfolio.
This deal follows Inspired Lending’s May rate reduction, which saw pricing begin at 0.89% per month. The move was prompted by a fall in the lender’s cost of funding and aimed to support rising demand for short-term finance with flexible terms.
Inspired Lending continues to provide short-term loans for residential and mixed-use property projects, including purchases, refurbishments and capital raising.
Diamond added: “This case reflects the kind of structured, practical lending we’re being asked to provide more often.”
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