“We’re increasingly working with borrowers who want to move away from speculative growth strategies and instead focus on assets that offer reliable cash flow, development upside, or long-term social value”
– Conor McDermott – LHV Bank
LHV Bank has announced that it has completed a new five-year fixed-rate buy-to-let facility to refinance two residential properties leased to a social housing charity, enabling the release of equity to support the acquisition of further sites.
The properties, located in Wallasey and Birkenhead, were acquired and refurbished by the borrower, Vital Homes, a property development group founded in 2022 by James Levy and Elena Pashevkina, who serve as chief executive officer and chief operating officer, respectively. The company focuses on providing housing for tenant groups, including prison leavers, domestic abuse survivors, and people with disabilities.
Properties are refurbished to a high standard and leased to local authorities or charity partners, providing much-needed accommodation and stability for those transitioning to independent living.
The LHV Bank facility refinanced bridging loans originally used to convert the properties into HMOs, while also releasing equity to support future acquisitions.
“This transaction is a reflection of our commitment to support specialist housing models that fall outside the norm but are underpinned by strong operators and long-term income,” said Edwin Yamoah, lending director at LHV Bank. “We were impressed by the impact Vital Homes is making through its partnerships with local authorities and charities. These are exactly the sorts of deals we want to support.”
The loan moved from credit approval to drawdown in just 31 days, helping the borrower avoid an additional month of bridging interest. The bank also worked with a specialist valuer outside its usual panel and agreed to lend against market value, despite a higher loan to vacant possession ratio than typically accepted.
Pashevkina commented, “There’s often a disconnect between what communities need and what traditional property finance is set up to support. That’s why working with a lender who sees the bigger picture is so important. LHV Bank brought insight, pragmatism and pace, and their backing sends a strong signal about what the future of socially responsible housing finance could look like.”
“Our focus has always been on delivering high-quality homes for those most in need,” noted Levy. “LHV Bank understood that from the first conversation. They didn’t try to force our model into a standard box, but took the time to understand how we work and were practical throughout. Having that level of flexibility and responsiveness from a lender makes all the difference.”
The transaction follows LHV Bank’s £5m facility to refinance two care home assets for a supported living charity operator. The bank has reported growing demand from impact-led and specialist borrowers across its SME lending division.
“We’re increasingly working with borrowers who want to move away from speculative growth strategies and instead focus on assets that offer reliable cash flow, development upside, or long-term social value,” said Conor McDermott (pictured), director of SME lending at LHV Bank. “In that context, our partnership-led approach really comes into its own. We’re here to offer support that’s grounded in the real world, and to move quickly when a deal deserves it.”
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