Funding Completion of a 21-Unit Residential Scheme in Manchester

We were approached by a client requiring urgent funding to complete the final stage of a commercial-to-residential conversion in Manchester. The property, acquired unencumbered, is being developed into 21 residential flats with a GDV of £3.9M.

Background

The client had purchased the asset for around £700,000 and secured planning approval post-acquisition. Major structural works had already been completed, and the client had completed first fix plumbing and electrics but additional funding was required to complete the second fix and final internal works.

Despite the property being unencumbered, the client had approached several lenders but was unable to secure funding due to the stage of the build and the time scale he required to finish the build.

Our Solution

We provided a £325,000 net bridging loan on an 18-month term, with interest fully retained. No formal valuation was required, allowing for a swift turnaround. While the property did not have a build warranty in place, the client was eligible for a retrospective warranty, which we permitted to be implemented post-completion.

• Loan Amount: £325,000 net

• Term: 18 months

• Interest: Fully retained

• Security: First legal charge over the asset

• Exit: Refinance onto MUFB term finance upon completion

Outcome

Our funding enabled the client to proceed immediately, complete the outstanding works, and prepare the scheme for long-term refinancing. The transaction was executed efficiently, with all parties aligned and the warranty solution addressed pragmatically.

Need Finance to Complete a Development?
If you’re nearing completion and require capital to finish and exit your scheme, we can help. Aura Capital delivers tailored bridging solutions with speed, flexibility, and certainty.

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Disclaimer: This case study has been anonymised to protect client confidentiality. Terms and outcomes vary depending on individual circumstances.