Funding package to support the purchase, renovation and conversion of a large terraced house in Derby

Funded:

£245,000

Location:

Midlands

Property Type:

Commercial

Funding:

Bridging Loan, Development Finance

The Project

The developer required a funding package supporting the purchase of a large terraced house in Derby and funds towards the renovation and conversion of the property into a 6 bed HMO which consisted of 1 x double room with en-suite bathroom and an additional 5 x double rooms with en-suite bathrooms and kitchenettes. The property had not been lived in for many years and had structural issues. The proposed conversion was supported by a fixed price contract with a longstanding local main contractor.

The Approach

Seneca liaised with the developer, its project manager and Seneca’s QS and reviewed the structural inspection reports and, by adding an additional contingency to cover possible remediation works, Seneca proceeded with the deal. Seneca provided £90,000 towards the purchase of the property and a further £155,000 to fund 100% of the build costs.

The Outcome

All professionals involved helped to get this deal over the line and Seneca now look forward to seeing the transformation of the property over the coming months.

Bridging Loans – Key Features

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  • Fast Decisions: Initial responses typically delivered within hours—perfect for time-sensitive situations like auction purchases.
  • Loan Size: £100,000 – £2.5 million.
  • Loan-to-Value (LTV): Up to 75% of the end value (Gross Development Value or market value), with flexibility available on a case-by-case basis.
  • Desktop valuations are available
  • Term: Usually up to 12 months, but occasionally longer if LTV can support it.
  • Interest Roll-Up: Interest can be “rolled up” and repaid at exit, easing cash-flow pressure during the loan term.
  • Interest Serviced: Interest can also be “serviced” allowing a larger day 1 cash drawdown (subject to serviceability).
  • Exit Strategy Required: Clear repayment strategy—such as sale or refinance—must be established at the outset.
  • Security: First legal charge on the property is required.
  • Transparent Costs: Arrangement fees typically start at 1%. No early repayment or exit fees, and no hidden admin charges.
  • Unregulated Product: these Bridging loans are not FCA-regulated, they are not available for owner-occupied residential properties.
Learn more about our Bridging Loans

Development Finance – Key Features

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  • Comprehensive Coverage: Funds typically cover land purchase, professional fees, and build costs.
  • Staged Drawdowns: Capital is released in phases, usually against certified expenditure.
  • Tailored Structures: Designed around project timelines, often short- to medium-term in duration.
  • Market leading LTV’s up to 75%.
  • We typically fund 75% of land purchase costs and 100% of construction/development expenses
  • Loans from £100,000 to £2,5m.
  • Expert Team & Relationships: We work with expert surveys who work closely with Developers to ensure funds are delivered promptly through the construction phase aiding cashflow.
  • Transparent and Responsive Service: With fast decision-making and clear dialogue, we support borrowers from initial enquiry through to delivery and repayment.
  • Unregulated Product: these Bridging loans are not FCA-regulated, they are not available for owner-occupied residential properties.
Learn more about our Development Finance

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