We were approached by an experienced developer purchasing a high street terrace property for conversion. They intended on retaining the commercial ground floor element but wanted to convert the upper floors into three residential flats.


Semi-commercial refurbishment and conversion bridging finance at over £1 million was required to carry out the development successfully. In order to secure the desired amount and to maximise the day one net loan, it was essential that a lender value the property with the benefit of planning, and finance against this value, not solely the purchase price. This made things tricky as typically lenders will finance against the lower of either the purchase price or the existing value of the property.


Peter Davies, our experienced specialist finance broker, was able to approach his network with the unconventional case and successfully secured finance with the lender willing to lend against the value of the property WITH planning, which gave a significantly higher figure than the purchase price – ideal for the developer’s requirements.


Peter Davies