Our borrower owned a four-bedroom semi-detached house of 5,000 sqft, spread over 5 levels, located in North London. GDV was assessed at £8m.
They needed a Finish and Exit loan to refinance their existing lender and fund the final £904k of works, then exit onto a long-term BTL facility.
Lendhub provided a £4.2m facility at 57% LTV and 52% LTGDV over 12 months, enabling completion of works and a clean refinance.
Key Challenges and Solutions
Warranty gap at completion
No new-build warranty had been engaged. We agreed a route to marketability by accepting a Professional Consultant’s Certificate (PCC) to be issued by the architect on completion, providing a recognised form of comfort.
Basement sign-off
Basement excavations had been removed from the original building control application and couldn’t be retroactively certified, which prevented sign-off. As a condition to the first refurbishment draw, the borrower appointed a new building control provider to complete an initial inspection and confirm they were satisfied with the works, enabling the full works to be signed off.
No historic monitoring
The build was self-funded, with no previous PMS monitoring. We appointed our own PMS, who reviewed historic building control reports, verified costs to-date, and validated a realistic cost to complete (supporting 63% LTC).
Unfinished basement pool
An unfinished pool created a safety and compliance risk. We required the pool area to be securely boarded in line with building regulations, and ensured the valuation appropriately reflected the works being excluded.
Outcome
We delivered a £4.2m light-refurbishment facility structured at 57% LTV, 52% LTGDV and 63% LTC on a 12-month term, enabling the borrower to refinance and fund the remaining works to completion.
Takeaway
- Pragmatic risk management: Where warranties are absent, we craft credible alternatives (e.g., PCC + defined inspection milestones).
- No previous monitoring: Stepping in on a scheme with no historic monitoring, we appoint a PMS, enabling accurate underwriting.
- Compliance first: Early conditions locked in (building control re-engagement, pool safety) to avoid end-of-project surprises.
- Correct route to sign-off: Private building control can’t certify works that have already been carried out, but the local authority can issue a regularisation certificate.
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