Conversion to Apartments

Location: Cardiff

LTV: 85%

LTGDV: 66%

Rate: 1% per month

Term: 12 months

Loan Purpose: Conversion of derelict house into 4 apartments

Exit: Refinance onto BTL portfolio mortgage

The Opportunity:

SevernRise was approached by an experienced developer seeking funding to transform a derelict end-of-terrace house in a Cardiff residential street. The property had fallen into significant disrepair, but with planning consent in place, the developer intended to deliver a scheme of 4 high-quality apartments, supported by a substantial double-storey wraparound extension.

Our Solution:

We provided an 85% Loan-to-Value facility on the day-one advance, with the overall facility representing 66% of the Gross Development Value. The loan was structured on a 12-month term at a fixed rate of 1% per month, allowing the borrower sufficient time to carry out the conversion works, complete the extension, and prepare the apartments for refinance.

Exit Strategy:

The agreed exit was via refinance onto the borrower’s existing BTL portfolio mortgage facilities. Given the developer’s strong track record, the quality of the scheme, and the strength of local demand, we were satisfied that the exit was achievable within the loan term.

The Outcome:

Our pragmatic approach enabled the borrower to progress the acquisition and begin works immediately, avoiding delays and keeping the project on track. This case demonstrates SevernRise’s ability to support experienced developers in delivering complex residential conversions with flexible and timely bridging finance.