LendInvest provides refinance and development exit for North West project

LendInvest has provided a £563,000 bridging loan and a £1.2m development exit to help a client purchase, convert, and sell a scheme in the North West.

The experienced developer was due to buy the property after receiving finance from another lender, but was subsequently let down.

The project involved seeking enhanced planning, and the subsequent conversion of the 12-bed detached property into six self-contained apartments. 

The bridging loan — which was introduced by brokerage Bridge Development Property Finance — was provided at 70% LTV. 

LendInvest also lent a further £187,000 for conversion works in order to finish the scheme, with the aggregate value of the units on completion at just under £1.9m.

Once works concluded on the site in summer 2020, LendInvest provided the borrower with a £1.2m development exit loan to support it through the sale process amid a Covid-19 stricken market.

The development exit was provided at 65% LTGDV.

Phil Mabb, director at Bridge Development Property Finance, commented: "While disappointing to have been let down so late in the transaction, fortunately we were able to take advantage of the existing valuation and legal work for the incumbent lender.

“Thereafter, we were able to progress to a successful completion, adding just a couple of weeks to the process.

“It was very encouraging that LendInvest both stepped in to save the day and took a pragmatic view in relation to the existing professional reports, thus minimising the associated costs of an aborted deal,” he added.

Leave a comment