Inspired Lending has provided £2.6 million in short-term finance to back the off-market acquisition and conversion of a former commercial building in Shrewsbury.
The project, introduced by broker Ryan Garbett of ERG Finance, highlights the importance of lender-broker collaboration in completing complex, time-sensitive transactions.
The borrower agreed a £2.25 million purchase price for the property and secured planning permission shortly after exchange. The approval allows for the conversion of the main building into a single, large dwelling alongside the construction of three detached executive homes within the grounds.
Conversion work on the main building began under licence from the seller before completion, enabling the borrower to realise a substantial uplift in value between exchange and final purchase.
Inspired Lending released a net advance of £2.1 million on day one to complete the acquisition and continue works, with a further £200,000 available in tranches to finish the main house conversion.
The case required close coordination between all parties, including the broker, lender and solicitors, to meet the transaction’s demanding timescales.
Inspired Lending specialises in short-term funding for residential and mixed-use property projects, including acquisition, refurbishment, conversion, development exit and capital raising. The lender recently completed a £380,000 loan in Bedfordshire to enable a limited company borrower to buy out a partner’s share in land within two weeks.
Gavin Diamond (pictured), chief executive of Inspired Lending, said: “This was a great example of what can be achieved when lenders and brokers share the same goal. The borrower had a clear strategy but needed us to be able to act decisively and with an understanding of planning gain potential.
“By working closely with ERG Finance, we were able to take a commercial view and support a well-executed strategy that delivered significant uplift in value. We’re proud to have supported another strong outcome for a client with a vision.”
Ryan Garbett, director at ERG Finance, added: “Deals of this scale and complexity only succeed when everyone pulls in the same direction. This deal was far from straightforward, and only possible thanks to a pragmatic lender, a valuer experienced in development and planning, and solicitors who worked tirelessly under tight timeframes.
“It is a fantastic outcome for all involved, and another example of ERG Finance supporting clients with complex, high-value opportunities. Inspired Lending’s ability to act quickly and decisively made a real difference, and we are pleased to have delivered such a strong result for our client.”
