Specialist short-term lender Inspired Lending has delivered a £935,000 second charge facility to support the completion of a luxury new build home in Buckinghamshire, structured as a ‘finish and exit’ loan.
The deal allowed the borrower to carry out final works on the property without refinancing an existing first charge mortgage, which remains in place.
By structuring the loan as a second charge, the borrower was able to preserve the terms of their original loan while accessing additional capital in a cost-effective manner.
The funding was split into tranches, with an initial advance provided on day one at 70% of the property’s current value. Further drawdowns were made available in line with the contractor’s schedule, keeping the facility aligned with actual costs and reducing the overall cost of capital.
In total, the lending represents 60% of the project’s gross development value of £2.75 million.
The completed property will be brought to market for sale, with the loan due to be repaid from the proceeds.
Inspired Lending said the transaction demonstrates its focus on practical, project-driven finance.
The firm provides short-term funding for residential and mixed-use property projects, including refurbishment, development exit and capital raising.
Recent completions include an £800,000 facility in Devon to finish a part-built housing scheme, and a £2 million commercial-to-residential conversion in Nottingham.
Gavin Diamond, chief executive of Inspired Lending, said: “Second charge funding can be a smart route for borrowers, with a low-cost first charge in place, who want to avoid the cost and hassle of refinancing.
“In this case, we’ve helped the borrower access the capital they need to finish the build, while keeping the overall structure efficient. It’s about delivering the right funding in the right way to suit the project.
“It’s a great example of the kind of lending we set out to do from day one, using common sense, acting quickly and keeping things clear and straightforward. That’s still at the heart of everything we do.”
