Episode 23 - Tuesday 14th July

Ground-up development, commercial bridging and HMO refinance highlight continued lender pragmatism.

This week's transactions highlight continued demand for specialist funding solutions across ground-up development finance, commercial bridging and HMO refinance.

As borrowers continue to pursue increasingly diverse investment opportunities, specialist lenders remain focused on delivering facilities that balance flexibility, speed and clearly defined exit strategies. Whether supporting a first-time developer, refinancing a commercial hospitality asset or structuring finance around an income-producing HMO portfolio, lenders continue to demonstrate their ability to assess each transaction on its individual merits.

Below are three of the standout transactions from this week's market activity, followed by Owen Nayar's commentary on the key trends emerging across the real estate lending market.

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Avamore Capital completes £2.18 million development facility for nine-flat residential scheme

Transaction Overview:

Lender: Avamore Capital
Facility: Ground-Up Development Finance
Loan Size: £2.18 million

Avamore Capital completed a £2.18 million ground-up development facility to support the construction of a nine-flat residential scheme.

The transaction involved several complexities, including a first-time developer, a site located adjacent to a railway line requiring a Basic Asset Protection Agreement and an unconventional unit mix featuring several five-bedroom apartments. Working closely with both the broker and borrower, Avamore structured a solution-led facility that reflected the strengths of the project and provided the certainty required for the development to proceed.

Deal Team:

• Adam Butler, Sales & Marketing Director, Avamore Capital.
• Saif Ali Khichi, Underwriter, Avamore Capital.
• Kelsey Phillips, Head of Specialist Finance, Arose Finance.

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TAB completes £595,000 bridging facility for Blackpool hotel

Transaction Overview:

Lender: TAB
Facility: Commercial Bridging Loan
Loan Size: £595,000

TAB completed a £595,000 first charge bridging facility secured against a freehold hotel in Blackpool.

Structured over a 12-month term at 52% loan-to-value, the facility provided the borrower with the flexibility to execute a planned refinance exit strategy. Taking a pragmatic view of the strength of the underlying asset, TAB delivered a tailored funding solution with both speed and certainty, allowing the borrower to progress their refinancing plans.

Deal Team:

• Michael Grant, Business Development Manager, TAB.

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MS Lending Group completes £882,000 HMO refinance in Uxbridge

Transaction Overview:

Lender: MS Lending Group
Facility: HMO Refinance & Share Purchase
Loan Size: £882,000

MS Lending Group completed an £882,000 first charge facility at 70% loan-to-value secured against two adjoining tenanted five-bedroom HMO properties in Uxbridge.

The transaction formed part of a share purchase agreement and refinance, enabling the borrowers to redeem their existing lender while releasing additional capital for future property investment. The two properties, valued at a combined £1.26 million, generate annual rental income of approximately £102,000, with passing rent comfortably servicing the monthly interest payments. The borrowers' refinance exit was already well progressed, with offers in place exceeding the value of the MS Lending Group facility.

Deal Team:

• Peter Maina, Relationship Manager, MS Lending Group.
• Michael Watson, Underwriter, MS Lending Group.

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What this week's transactions tell us about the market

This week's transactions reinforce several trends that continue to shape activity across the UK real estate finance market.

Development finance continues to support ambitious schemes where lenders have confidence in both the project fundamentals and the borrower. Even where transactions involve first-time developers or more complex site characteristics, specialist lenders remain willing to structure facilities where risks are clearly understood and appropriately managed.

Commercial bridging also remains an important funding solution for borrowers requiring speed and flexibility. Where there is a clearly defined refinance or sale exit strategy, lenders continue to take a pragmatic approach to underwriting, allowing transactions to complete within demanding timescales.

Meanwhile, HMO refinance activity continues to demonstrate the importance of income-producing assets within the specialist lending market. Strong rental coverage, appropriate leverage and well-established exit strategies continue to provide lenders with confidence when supporting experienced property investors.

Across all three transactions, one theme remains consistent. Lenders continue to back borrowers where there is a well-structured proposal, appropriate security and a clearly defined exit strategy.

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Why these Transactions Matter

Tuesday's Top Transactions showcases some of the most notable deals completed across the UK real estate finance market each week.

By highlighting completed transactions across bridging finance, development finance, commercial real estate lending and specialist funding solutions, the series provides brokers, lenders, developers and property professionals with valuable insight into current lending activity and evolving market trends.

More than simply reporting completed deals, each episode offers a snapshot of where lender appetite exists and how facilities are being structured to support increasingly complex borrowing requirements.

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Have a Transaction Worth Sharing?

If you've completed a notable real estate finance transaction and would like it featured in a future edition of Tuesday's Top Transactions, we'd love to hear from you.

Sharing successful deals helps showcase innovation across the market while providing valuable insight for brokers, lenders and property professionals following the latest lending activity.

To submit a transaction for a future episode, contact Owen here:

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