Finance for Lincolnshire Class Q barn conversion into 2 dwellings

Rural properties with outbuildings offer very desirable potential for development into dwellings for sale or letting income. And Class Q permitted development can make it happen sooner. Conversion costs can be high, but the uplift in value is impressive.

The Scenario

A developer approached us who had bought a farm with outbuildings outside Melton Mowbray: he  had a Class Q application to convert a derelict barn into two dwellings, and was looking at his finance options.

The site was valued at £350K, with a projected GDV of at least £1.1M

Build costs, professional, marketing and sales costs were estimated at £600K+.

The Solution

For an LTV not exceeding 60%, we found the funding he was looking for at a very competitive 8% pa, to be repaid by sale or refinance of the two finished homes.

Funding was structured with an initial advance of £170K and development finance of £435K, running over an achievable 18-month term - lending to be repaid by sale or refinance.