Lendhub completes £2.1m refurb-development hybrid facility

Lendhub has completed a £2.1m facility for the acquisition and refurbishment of a 12-flat apartment block and three-unit ground-up construction in Addlestone, Surrey.

The 18-month facility combines medium refurbishment of the existing stock with the development of the new units in a single structure via a planning-permitted rear extension with a projected post-completion GDV of £3m.

The facility was structured at 67% LTV on day one and 70% LTGDV, with rolled interest across an 18-month term. The day-one advance of £1.05m funded the acquisition, with a build tranche of £822,000 drawn in stages across the combined refurbishment and development programme.

The borrower is acquiring the property with full planning consent in place for a rear extension, creating three new residential units, with façade alterations, associated parking, landscaping, and servicing works.

Rather than running separate bridging and development lines, the facility was sized to handle both workstreams in parallel, with drawdowns calibrated to the refurbishment programme on the existing block and the construction programme on the rear extension.

Once complete, the scheme is projected to lift the asset value from an entry market value of £1.56m to a GDV of just over £3m.

The deal was introduced by Adam Klein, property finance broker at Atlas Property Finance, while the valuation was undertaken by Jack Glendinning, associate director at Lambert Smith Hampton, with IESIS Consult acting as monitoring surveyor.

Dan Margolis, relationship manager at Lendhub, commented: “The borrower had two jobs on one site: refurbish the existing 12 flats and build three new units at the back.

“Packaging it as one facility rather than two was the right commercial call, but it needed credit, the broker, and the monitoring surveyor aligned from day one.”

Adam Klein added: “The client needed a lender willing to look at the whole site rather than splitting the refurb and the new build into separate facilities.

“Lendhub engaged with the combined structure from the outset and matched the pace required to complete on the acquisition.”