An experienced developer set out to transform three adjoining Grade II Listed terraced properties into three townhouses in Surrey.
The Challenges
1. Grade II listed building conversion
Converting a Grade II listed building is challenging due to the strict regulations aimed at preserving historical features. These regulations limit what changes can be made, often leading to extra costs and delays, which in turn increases the risk for lenders.
2. Planning amendments
Midway through he project, the borrower submitted amendments to the existing planning application, triggering a judicial review period.
3. Request to take equity out of the deal
The borrower, an overseas investor with no personal cash equity, relying solely on third-party funds, requested cash from development drawdowns by acting as the project manager and counting management fees as equity. This unconventional approach is typically rejected by most lenders.
The Solution
- Lendhub’s experience with listed properties
With a proven track record of financing listed buildings, our extensive experience in listed developments allowed us to navigate these complexities with confidence.
- Commercial Views Taken
We agreed to take a variety of commercial views on the planning and developer equity investment.
The Outcome
Lendhub structured a bespoke facility of £1.8m with a 75% LTV day one and 70% LTGDV over a 14-month term. With Lendhub’s flexible financing and expert problem-solving, the developer secured the necessary funds to proceed confidently, leveraging the property’s £965,000 market value toward an impressive £2,575,000 GDV. The project is on track to deliver high-end residential units in a sought-after location, demonstrating the power of tailored lending solutions in turning listed properties into modern investments.
