The Opportunity
Our client identified a mixed-use property in London with significant untapped potential.
The building comprised:
A ground-floor retail unit
A vacant workshop to the rear
A flat on the upper floor
While many investors saw a standard mixed-use property, our client recognised an opportunity to create a much higher-income producing asset through a combination of refurbishment, reconfiguration, and permitted development.
The proposed scheme would transform the property into:
A 6-bedroom House in Multiple Occupation (HMO)
A self-contained residential flat
However, securing funding for a project of this complexity required a lender with a detailed understanding of commercial conversions, permitted development rights, and value-add investment strategies.
The Challenge
Traditional lenders often struggle to assess projects that fall outside standard lending criteria.
This transaction involved several factors that limited the available funding options:
Commercial-to-residential conversion
Significant refurbishment works
Reliance on permitted development rights
Multiple stages of value creation
Tight acquisition timescales
The client needed a lender that could see the project's end potential rather than simply assess the property in its current condition.
Our Strategy
Using our specialist lender network, we identified a short-term finance provider with extensive experience funding commercial conversion projects.
More importantly, the lender understood the opportunity created by the proposed scheme and was comfortable supporting the project from acquisition through to completion.
We structured a facility that provided:
75% loan-to-value funding for the purchase
100% of refurbishment costs funded
Competitive rates linked to Bank of England Base Rate
Flexibility to support the conversion strategy
Our understanding of the permitted development process also proved valuable. The vacant workshop was considered ancillary to the commercial premises, allowing the project to proceed under Class MA permitted development rights.
Prior approval was secured within just a few weeks, allowing the project to move forward far more quickly than a traditional planning application route.
The Result
The project was successfully completed, transforming an underutilised mixed-use property into a significantly more valuable and profitable asset.
Key Outcomes
75% acquisition funding secured
100% refurbishment costs funded
Specialist lender sourced for a complex project
Permitted development route utilised
Planning timescales significantly reduced
Property transformed into a 6-bedroom HMO and self-contained flat
Rental income substantially increased
Significant value added through refurbishment and reconfiguration
Why This Matters
Many of the best property opportunities are overlooked because they don't fit neatly into conventional lending criteria.
Success often depends on understanding both the funding landscape and the development strategy.
In this case, the combination of specialist lender access, permitted development expertise, and careful project structuring allowed our client to unlock substantial value from an underperforming asset.
By securing the right funding from the outset, the client was able to move quickly, complete the conversion efficiently, and create a high-yield investment generating significantly greater rental income than the original property.
This is exactly the type of project where specialist finance advice can make the difference between a missed opportunity and an exceptional investment outcome.