Inspired Lending has provided a £1.07 million facility for the purchase and refurbishment of a vacant Multiple Unit Freehold Block (MUFB) in Cornwall.
The project involved the acquisition and modernisation of 16 flats, with plans to create two additional units upon securing planning permission.
The borrower, a direct applicant, secured the property for £1 million and intends to invest £305,000 in refurbishment and modernisation works. Inspired Lending agreed to fund the full refurbishment costs in tranches, supporting the borrower’s phased approach to enhancing the property.
The facility provided a 65% net Day 1 LTV, rising to 70% Loan to Gross Development Value (LTGDV), including all associated works costs, fees, and rolled-up interest. The loan is secured by way of a first charge against the purchased property and has a 12-month term, providing a decent window for the borrower to complete the works and refinance the property to hold in their portfolio.
The borrower also plans to apply for planning permission to create two additional flats on an infill basis. Inspired Lending is prepared to fund these additional works upon approval.
Gavin Diamond (pictured), CEO of Inspired Lending, said: “This case is an excellent example of how we tailor our lending solutions to meet the needs of experienced property investors. By funding both the purchase and refurbishment in a flexible and phased manner, we’re allowing our client to unlock the full potential of this property.
“The borrower’s plans to seek planning permission for additional units added an exciting dimension to this project, and we’re proud to support their vision.”
