Securing finance for the redevelopment of tired offices

Securing finance for the redevelopment of tired offices

Article by Chris Oatway Co-Chief Executive Officer

What was the situation?

My client, a highly experienced developer with a long-standing relationship with LDN Finance, was in need of bridging finance at high leverage at 90% purchase price on a site which was offices and workspaces, but in need of redevelopment.

This property was a below market value purchase where we needed a lender to focus on the value and the potential uplift through planning rather than the purchase price. They would then secure planning and the exit would be development finance.

What was the issue?

A challenge that some borrowers face when looking for lenders to secure funding against commercial assets with residential planning potential, is the leverage. Often, lenders feel more confident in a lower LTV or LTPP application, however there are lenders in the market that understand how the current value can be viewed with hope value for planning and therefore it is worth more than a straight forward commercial building.

What was the process?

At LDN Finance we have access to a range of funding partners, from high street and private banks to independent funders. I therefore knew exactly the lender that would be most suitable for this who I was certain would be able to help develop a very strong relationship with the client by providing finance.

As a small lender, it was imperative that all parties could be trusted to deliver and help create a prosperous, long-term relationship. Through negotiating the highest leverage possible, pushing the lender on providing a rate that was no higher than any of the other lenders in the market, provided an excellent funding package for the client which ticked every box they were looking for.

What was the solution?

I was delighted to deliver on the client’s expectation, completing on the exact date we planned at circa 90% purchase price with a competitive rate. Also, a new relationship was forged between the lender and the developer. Both are excited about working together on the first of many deals!


Lending solutions with LDN Finance

Are you exploring your options for development finance? We’re here to help you find a solution – no matter how complex your circumstances. At LDN Finance, our expert brokers have extensive experience in providing creative solutions to secure large loans for our clients.

We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates.

Get in touch with us to organise an initial consultation.

Need expert mortgage advice?
We can help.

Get in touch with our expert residential mortgage advisers today to get started on your property finance journey. Whether you’re buying your first home, upsizing for more space or refinancing your property portfolio, our award-winning mortgage brokers have got you covered.



Our happy clients

Excellent and outstanding professional service from start to finish. From offering as many options as possible, to explaining to me very quickly what the benefits are and what I should really be thinking about moving forward. Thoroughly recommend.

Mr. M

July 2021

5 Stars! The LDN team supported us purchasing our family home, without their support and as an expat it would have been very difficult to obtain our new home in the UK. I would totally recommended them.

Mr. S

August 2021

Johnny Martin held our hands through the entire process calmly and professionally. Brilliant service, efficient and swift in response to everything. He made the entire journey uncomplicated even when the bank made it complicated. Highly recommended.

Mr. H

July 2021

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