Inspired Lending has delivered a £2 million loan facility to fund the acquisition and residential conversion of a disused commercial property in Nottingham.
The deal provided the borrower with 100% funding for both the purchase and the development.
The client intends to convert the building into six six-bedroom houses in multiple occupation (HMOs). The lender will release the £900,000 works budget in stages as the project progresses. The loan was structured to cover the full cost of the transaction, with an initial advance of 70% of the property’s current market value and a total loan-to-GDV of 65%.
To bridge the gap between the initial advance and the borrower’s full funding requirement, Inspired Lending secured additional second charge security over three further properties held by the directors and shareholders of the borrowing entity.
The deal was introduced by a broker whose client had originally planned to raise capital using multiple bridging loans from different lenders. Inspired Lending consolidated the requirement into a single, structured facility, described as a more efficient and cost-effective solution.
Upon completion, the borrower plans to refinance the redeveloped asset and retain it within their existing portfolio.
The transaction follows a cut in Inspired Lending’s headline interest rate to 0.89% per month in May, prompted by a reduction in the lender’s cost of funding. The move was designed to help brokers and borrowers access competitively priced short-term finance with flexible terms.
Gavin Diamond (pictured), chief executive of Inspired Lending, said: “This case reflects the kind of structured, practical lending we’re being asked to provide more often.
“By taking a joined-up view and using additional security, we helped the borrower access 100% funding without the complexity of multiple facilities.
“It’s an approach grounded in common sense, driven by experience, and delivered with speed, clarity and honesty.
“That way of working has helped us steadily grow our presence in one of the fastest-moving and most competitive parts of the property lending market.”
