The transaction has a loan-to-value (LTV) of 64.6% and was issued for a 6-month term, after which it will be refinanced onto a pre-agreed development facility with Avamore Capital.
Avamore Capital has closed a £271,471 bridging loan, which took two days to underwrite and complete after formal terms were accepted.
The transaction has a loan-to-value (LTV) of 64.6% and was issued for a 6-month term, after which it will be refinanced onto a pre-agreed development facility with Avamore Capital.
Originally, Avamore issued terms for a development loan for a site the borrower had a bid for at auction; however, the borrower was under pressure to exchange on his purchase and did not want to lose the site.
Whilst further reports, documentation and checks were required for the completion of the development loan, Avamore restructured the deal into a bridge followed by a development.
Avamore reissued bridging terms to the borrower and the broker and, after these were accepted, the deal was underwritten in two days to ensure that the borrower would receive the funds for purchase within the required time frame.
The site has prior planning to be demolished and replaced with a two-storey building of three self-contained flats.
Avamore took comfort in the strength of the scheme, the borrower’s previous experience on similar projects and the expected value of the completed property; the lender was therefore confident in the revised deal structure it offered to the broker’s customer.
Ying Tan, founder and chief executive of Dynamo, said: “Avamore were extremely helpful from the outset.
"We’ve been impressed by their willingness to adapt to changing circumstances and ability to move quickly to meet our client’s timescale.
"These are certainly qualities that as a broker we value highly and we look forward to working with Avamore on future projects.”
Adam Butler, relationship manager at Avamore, said: “I am really pleased that we were able to get this transaction over the line.
"It’s the first time we have worked with the borrower and broker and so it was more important than ever that we maintained clear lines of communication.
"They were transparent about the borrower’s situation throughout which meant that we were ready to react to whatever he needed to ensure that the deal didn’t fall through.
"It was great teamwork and I am really looking forward to re-financing the project onto a development facility as we had originally planned.
"Things are rarely straightforward and so, I’m pleased that we were able to get the best outcome for the customer despite some unexpected challenges.”
