Episode 35 - Tuesday 6th October

Mixed-use redevelopment, capital raises and refurbishment-led bridging continue to shape lender activity.

This week's transactions highlight continued demand for specialist lending solutions across mixed-use redevelopment, portfolio restructuring and refurbishment-led investment strategies.

From borrowers unlocking equity across multiple assets to investors refinancing high-value residential properties following extensive redevelopment, lenders continue to support well-structured opportunities where the exit strategy is clearly defined.

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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Inspired Lending

Transaction Overview:

Lender: Inspired Lending
Facility: Developer Exit Facility 
Loan Size: £822k

Inspired Lending completed an £822,000 developer exit loan for an SPV borrower in Sydenham, South East London.

The 12-month loan was agreed at 70% LTV, priced at 0.89% per month and secured as a first charge. The facility refinanced existing borrowing and released funds for other property projects already underway.

The security comprised the final two flats within a newly built eight-unit scheme, following the successful sale of the other six properties. With both remaining units already on the market, the borrower had a clear route to repayment.

The structure allowed equity held within the completed scheme to be released and redeployed elsewhere in the developer’s portfolio. Rather than waiting for the final two sales to complete before moving ahead with other projects, the borrower was able to access funds at an earlier stage and maintain momentum across their wider pipeline.

Gavin Diamond, CEO of Inspired Lending, explained that developers can reach the end of a successful scheme with most units sold, but still have significant capital tied up in the final properties. In this scenario, the key question is not always whether the remaining units will sell, but whether it makes commercial sense to leave that capital tied up while they do.

He added that developer exit finance can be particularly useful when a development has effectively done what it was meant to do, the bulk of sales have completed and there is a clear repayment route, but the borrower needs to bridge the gap between finishing one project and putting capital back to work in the next.

Deal Team:

Gavin Diamon,, CEO, Inspired Lending

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Pallas Capital

Transaction Overview:

Lender: Pallas Capital
Facility: Development Finance Facility
Loan Size: £3.9m

Pallas Capital completed a £3.9m development loan to refinance the completed first phase of a residential scheme near Market Drayton, Shropshire, while also funding construction of the second phase.

The 16-month facility was quoted at 65.5% loan-to-gross-development-value and supports a scheme that will comprise eight homes across both phases.

Following receipt of the valuation, Pallas revised the loan structure, taking the borrower’s existing residential portfolio in Stone, Staffordshire as additional security. The lender also revised the legal and valuation instructions to reflect the updated structure.

The transaction involved coordinating the handover from the previous lender to help avoid penalty charges, as the existing facility had moved beyond its term.

The borrower is an experienced developer and contractor who had completed the first phase before approaching Pallas for funding. Homes from the completed phase are now being brought to market for sale while the wider scheme continues to progress.

The transaction was introduced by a broker and completed roughly four weeks after terms were agreed. The monitoring surveyor had previously worked with the borrower under the former lender, helping provide continuity during the transaction.

Mark Witherington, Senior Originator at Pallas Capital, led the deal and said the case was a good example of the lender staying close to the borrower and working out a structure that fits, rather than defaulting to no when something does not tick a standard box.

He described it as the kind of hands-on underwriting that development finance often needs, and a key part of how Pallas has built its reputation with brokers and developers since launching.

Deal Team:

Mark Witherington, Pallas Capital, Senior Originator

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Glenhawk

Transaction Overview:

Lender: Glenhawk
Facility: Regulated Bridging Facility
Loan Size: £1.9 million

Glenhawk completed a £1.9m regulated bridging loan, giving the borrower additional time to market and sell a converted barn in Watford.

The facility was secured against the residential property at 66% LTV and used to repay both a first and second charge. The second charge had previously been taken out to fund a substantial refurbishment of the property.

The property was already on the market when the borrower approached Glenhawk, but additional time was required to secure a suitable buyer. Glenhawk’s facility allowed the borrower to continue marketing the property at an asking price above its valuation, giving them more time to pursue the desired sale price rather than accepting a quicker sale.

The transaction was introduced by Paul Lefevre, Director at Happy Brokers, originated by Ryan Brewer, BDM at Glenhawk, and progressed to completion by Ruth Griggs, Underwriter, and Rhiannon Kenny, Case Manager.

Ryan Brewer said that, in a market characterised by lower confidence and a slower sales pace, Glenhawk is seeing an increase in sales bridges where borrowers need more time to market and sell their properties. He added that whether Glenhawk is refinancing a development loan, residential mortgage, or in this case both a first and second charge, the lender can often provide borrowers with the breathing space they need.

Paul Lefevre described Glenhawk as excellent to work with on what he called a complicated regulated refinance. He highlighted that on larger and more complex transactions, communication, flexibility and certainty of delivery are key, and said the Glenhawk team were pragmatic and responsive throughout.

Deal Team:

Ryan Brewer, Business Development Manager, Glenhawk

Ruth Giggs, Underwriter, Glenhawk

Rhiannon Kenny, Case Manager, Glenhawk 

Paul Lefevre, Director, Happy Broker

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What this week's transactions tell us about the market

This week’s transactions highlight continued activity across developer exit, development finance and regulated bridging, with specialist lenders supporting borrowers where timing, structure and a clear route to repayment were central to the funding requirement.

Developer exit finance continues to provide an important solution where completed schemes still have equity tied up in the final units. Rather than waiting for every sale to complete before moving on to the next opportunity, developers can release capital from finished stock and redeploy it across other live projects, helping maintain momentum across a wider pipeline.

Development finance also often requires a more flexible underwriting approach as schemes progress. Valuations, security positions and existing borrowing can all change during a transaction, and lenders that are willing to reshape facilities around those changes can help keep projects moving rather than allowing a revised structure to become a barrier to completion.

Meanwhile, regulated bridging continues to provide borrowers with additional breathing space where a property is already on the market but the right sale has not yet been secured. Refinancing existing charges can give borrowers more time to pursue a suitable buyer and avoid being forced into a quicker sale simply to meet an approaching repayment deadline.

Across this week’s transactions, the recurring theme is the importance of lenders understanding the borrower’s wider objective. Whether releasing equity from completed stock, restructuring development finance around additional security or providing more time to achieve a suitable sale, flexible underwriting and a clear exit strategy continue to play a key role in getting specialist lending transactions completed.

Why these Transactions Matter

Tuesday's Top Transactions is designed to showcase 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 mortgages and specialist lending, the series provides brokers, lenders, developers and property investors with valuable insight into where funding is flowing and how facilities are being structured.

Beyond the headline loan sizes, these updates offer a snapshot of current lending appetite, emerging market trends and the innovative funding structures helping borrowers deliver successful property projects.

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.

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