A £895,000 loan has been secured by Avamore Capital for a first-time developer's two-home ground-up construction project in Bromley, marking a significant milestone in supporting emerging talent in the UK property development sector. The 15-month facility, structured at 70% loan-to-GDV, represents the lender's willingness to take on risk with less-experienced developers.
The deal is notable for Avamore's decision to fund professional costs and Community Infrastructure Levy (CIL) payments directly, waiving the need for formal monitoring surveyor interim reports. This streamlined approach aims to reduce administrative delays during construction, allowing the borrower to focus on delivering the project on time.
Plagued by a planning permission set to expire within two months of loan completion, Avamore conducted a thorough review and deemed the borrower's plan to commence works and preserve consent sufficient to meet the deadline.
This move marks a shift towards assessing borrowers' capabilities beyond their previous project types, reflecting the increasingly complex landscape of government housing policies and planning constraints. In contrast, investment strategies in the buy-to-let sector remain heavily focused on track record.