Hope Capital has launched a new specialist commercial loan aimed at developers seeking to repurpose existing commercial properties into residential or mixed-use spaces.

The Liverpool-based short-term lender said the new offering supports sustainable development and responds to the growing demand for affordable housing and adaptable urban spaces.

The product includes a flat rate of 0.92% up to 70% loan-to-value for commercial-to-residential conversions, representing a cut from the lender’s previous commercial rates which started at 1.09%.

Conversions to semi-commercial use will attract a slightly higher rate of 0.95% at up to 65% LTV.

Loan amounts range from £100,000 to £5m and are available on terms from three to 18 months.

Borrowers can also access up to 100% of the build cost and, in some cases, up to 100% of the purchase price where additional security is provided as either a first or second charge.

“Our latest commercial loan supports our ESG strategy by backing developers committed to sustainable practices”

Kim Parker, head of sales at Hope Capital, said the new product reflects both the lender’s environmental goals and its awareness of shifting market dynamics.

“Our latest commercial loan supports our ESG strategy by backing developers committed to sustainable practices,” she said.

“It also positions them strongly in a market where demand for affordable housing and mixed-use spaces continues to grow. On top of that, this type of investment offers key advantages, such as higher rental yields, alignment with market needs, and obtaining a smoother approval processes for construction works.

“Ultimately, this exclusive product provides a fantastic opportunity for our borrowers to capitalise on a higher LTV and rates which are significantly cheaper compared to standard commercial offerings in the market.”

LIGHT & HEAVY

The loan is intended for a range of refurbishment works – from light to heavy – and comes with a number of borrower-friendly features. These include no exit fees, dual legal representation up to £750,000, and a choice of flexible payment methods including serviced, deducted and part-serviced options.

Hope Capital also offers direct access to decision-makers, and KYC and AML checks can be completed electronically.

The lender said the product is particularly suited to developers operating in urban areas where the cost of demolishing and rebuilding often outweighs the expense of adapting existing structures.