An experienced developer required funding to deliver an airspace scheme. They wanted to add one storey and create four new apartments above an existing mixed-use block in Hackney.
The asset comprised a ground-floor commercial unit with three residential floors above. With planning secured to add a further storey, the scheme targeted a GDV of £2.4m.
Lendhub provided a £1.4m Heavy Refurbishment facility structured at 72% LTC over 16 months, enabling the borrower to fund works and keep the build programme on track.
Key Challenges and Solutions
Compliance gaps (ROL & CIL)
Works had begun without a Rights of Light (ROL) survey and with an overdue Community Infrastructure Levy (CIL) . A ROL survey assesses whether a scheme would infringe neighbours’ legal rights to natural light; a CIL is the local authority’s charge on new development.
We obtained a ROL survey to quantify exposure, then arranged appropriate indemnity cover. We also agreed for the borrower’s solicitor to settle the overdue CIL from the net advance at completion, clearing the liability without delays.
Non-panel Project Monitoring Surveyor (PMS)
A PMS had already inspected for another lender and produced a strong baseline report but they weren’t on our panel. After inspecting their credentials and approach, we adopted the same PMS, preserving the pre-works baseline and avoiding further inspections and costs.
Local authority search delays
The Local Authority Search (the council’s legal/planning report pack solicitors rely on at completion) was delayed due to a backlog. We proceeded on partial search returns and covered the outstanding items with targeted indemnity cover, keeping the timeline on track.
Outcome
Lendhub delivered a £1.4m Heavy Refurbishment facility at 72% LTC and 60% LTGDV over 16 months, allowing the borrower to:
- Add one storey and deliver four new apartments
- Settle CIL from the net advance and ROL via survey and indemnity
- Maintain project on track despite Hackney Council search delays through partial searches
- Progress toward a dual exit: refinance part of the units and sell the remainder
Takeaway
This case shows how Lendhub can:
- Fund complex airspace and heavy refurbishment schemes with pragmatic structuring
- Use surveys and indemnities intelligently to manage risks and potential costs down the line
- Flexible panel requirements where justified to avoid delays
Have a similar scheme? Click below to discuss how Lendhub can structure the right funding for you.
