Following the introduction of our new commercial loan, we wanted to showcase our success and ability to deliver funding for developers looking to capitalise on commercial conversion opportunities. 

One such deal involved the refinance of an unoccupied commercial property in Hope Capital’s home county of Merseyside that had lain dormant and derelict for almost three years. The broker for the experienced borrower, John McNamara of Focus, with whom we have a long-standing working relationship with, approached our National Account Manager, David Weir, and Business Development Executive, Michael Trafford. Their client required £696k, which we provided at 59% LTV and 65% GDV, a highly competitive facility for a commercial to semi-commercial conversion.

As a result, the borrower was able to pay off the existing charge on the property and complete the refurbishment works to transform what was a vacant commercial building into a vibrant semi-commercial 20‑room aparthotel with bar and restaurant, operating under Sui Generis use class. 

This project will tie in nicely with Everton Football Club’s new stadium sponsored by Hill Dickinson LLP. The semi- commercial property which will be named “The Toffee Rooms” will sit within walking distance of the new ground, offering excellent traffic and potential revenue to the site. 

With terms issued for the £168k gross day‑one purchase and £528k net refurbishment funds, our Senior Underwriter, Ryan Peers, began his due diligence to get this deal funded as quickly as possible. Balancing risk management and speed of service was of the utmost importance. While a full valuation was required as the case fell under our refurbishment classification, we were still able to proceed with the underwriting at pace, utilising full title insurance. Not forgetting we teamed up with one of our excellent solicitor partners over at JMW, to expedite legal processes, and used DocuSign to avoid unnecessary delays when organising essential documentation.

Although the full term of the loan is 15 months, the deal was structured with the initial £168k paid to cover the borrower’s refinance. The further £528k was used for refurb tranches and paid in arrears with interest then deducted on each drawdown. At Hope Capital, we strive to make interest repayments as convenient as possible by offering a range of payment options tailored to suit each client’s preferences. In this scenario, by the borrower opting for a deducted interest repayment method, it enabled them to reduce the cost by removing the full interest amount from the gross loan.

We are incredibly proud as a Liverpool‑based lender to see our ESG product play a part in the regeneration of unutilised property right on our doorstep while also funding an experienced property developer’s lucrative investment opportunity and portfolio growth.