£825k to refinance and convert a Chichester house into two homes
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The team behind the project
The borrowing company was newly incorporated. Behind it were guarantors with strong net asset positions, led by a developer with 25 years' experience in construction.
The lead guarantor has delivered more than 1,000 residential units across the South of England with established housebuilders on schemes ranging from single builds to 300-unit developments. That track record, together with the planning permission already in place, supported our decision to provide the finance required.
The scheme and exit
Our refurbishment finance will fund the renovation of the property and a side extension replacing an existing garage. The extension will comrpise the second home, resulting in a completed scheme of two houses, each with three bedrooms.
The two new properties will have a combined gross development value (GDV) of £1.1m, supported by comparable sales evidence. The site is within walking distance of Chichester city centre, good schools and local amenities.
The proposed exit is the sale of both homes. A buy-to-let refinance was considered as a secondary route, subject to the completed homes meeting the relevant lender's valuation and lending requirements.
The facility
We structured the facility over 15 months, allowing for a planned nine-month construction programme followed by a further six months to sell. Works are set to begin within one month of completion, with a monitoring surveyor overseeing the build.
The facility gives the team funding to complete the conversion, with time allocated within the term for both the works and the sales.
The deal was delivered by Jack Bruce and Rose Mears.
Have a similar conversion to fund? Speak to our team or try our Quick Calculator for an indicative view on what we can lend.
