Experience doesn't always look the way lenders expect it to.
Our borrower had spent over 20 years working as an architect and construction consultant. They'd delivered more than 50 projects across the UK but they'd never been the principal on their own development.
When they found two vacant office units in Brentford, with strong potential for permitted development conversion into 15 residential flats, they needed a lender prepared to back the opportunity without relying on traditional experience. Lendhub delivered a £3.7m loan at 70% LTV and 70% LTGDV, structured over an 18-month term.
Key Challenges and Solutions
First-Time Developer Status
Their background as an architect meant they understood construction, planning, and project management at a level most first-time developers do not. While many lenders may not have treated this as direct development experience, we took a broader view of the borrower’s track record and were confident they had the technical knowledge to deliver the scheme.
Caimin Bugler, Credit Manager, met them on site and was reassured by their technical knowledge and passion for the scheme. This gave us even more confidence in their ability to deliver successfully.
Stretched Leverage at 70% LTGDV
The borrower needed 70% LTGDV lent against the aggregated value, which is at the upper end of what most lenders would consider for a first-time developer. We structured the facility with the stretched leverage supported by extra funding from our source of private capital to make the numbers work while maintaining appropriate risk coverage.
Planning Not Yet Confirmed
Ben Miller, Credit Analyst, assessed the property's eligibility and reviewed the planning history in the area. This made us comfortable with the straightforward nature of the proposed conversion of the two vacant office units into 15 residential flats. However, the purchase of the properties and loan completion was conditional to the Permitted Development Approval.
The Outcome
We provided a £3.7m facility to fund the acquisition and full conversion of two vacant office units into 15 residential flats. The scheme will deliver much-needed housing stock in a well-connected West London location with strong transport links and rental demand.
This deal was delivered by Jack Bruce, Caimin Bugler and Ben Miller.
