Signature Property Finance has completed an £87,500 light refurbishment loan to support the purchase and upgrade of a three-bed mid-terrace in Llanelli, delivering 100% funding of qualifying works via staged drawdowns.
Introduced by Declan Ward of The Finance Ward, this deal again highlights Signature’s appetite for practical, value-added refurbishments to upgrade existing poor-quality housing, undertaken by experienced developers with an achievable exit.
Well connected to Swansea and Cardiff via the A484/M4 and rail, with frequent local buses and good retail options nearby, including Parc Trostre Retail Park. Llanelli is a town on the up again, with strengths in advanced engineering and creative industries, making it an area with a growing demand for rental properties.
Supporting focused upgrades with staged funding
The borrower agreed the purchase at £70,000 for this around 82 sqm property, which currently has an EPC C rating, although this is expected to improve, once the refurbishment works have been completed.
The refurbishment works include a comprehensive rip-out, electrical works, boiler service, new windows and doors, new kitchen and bathroom. Also being undertaken are carpentry upgrades, including skirting, architraves and door linings, with new flooring throughout and garden improvements to make the whole property presentable and ready for a new tenant.
Signature’s facility provided a net day-one advance of £42,212 against the current value, with a £34,500 (100% cost of works) facility released in arrears on evidence of progress. The programme is targeted for completion within 12–16 weeks, comfortably inside the agreed 12-month term.
Clear structure and a good exit plan
Set at around 70% LTGDV and 85% LTC, the facility Signature has provided, strikes a balance between strong borrower support and sensible risk controls.
Drawdowns were supported by evidence-based monitoring to maintain quality and momentum of the refurbishment works. The upgrade is being delivered by a local contractor already known to the borrower and used for a similar project in the area.
Independent valuation supports a GDV of £125,000 and an ERV of around £10,000 pa, provides headroom for the expected BTL refinance on completion. An open-market sale provides a robust secondary exit, given average property values in the area have seen steady growth, with similar terraced homes typically selling between £120,000 and £150,000.
Josh Barrett, Relationship Manager at Signature Property Finance said: “This was a textbook light refurb made easier by an experienced client and a broker who does the groundwork. With sensible leverage and staged drawdowns, it’s exactly the sort of value-add project we’re keen to back.
“Declan brought a well-evidenced proposal with realistic numbers and exits, which makes funding decisions straightforward. This is the fourth similar upgrade project introduced by this broker in a short period, which demonstrates satisfaction with the product and our service delivery, better than any testimonial could.
“The borrower has another project in progress funded by another lender, that does not support developers with works funded in arrears like we do with our Light Refurbishment project, which means self-funding the improvement works – slowing progress.”
Broker Declan Ward of The Finance Ward commented: “What sets Signature apart is their certainty of funding and the way they follow through on what’s agreed at the outset, making for a simple lending process for all concerned.
“Josh and the Signature team kept everything moving, communicated clearly and delivered as promised a product that delivers what developers need to get quality housing back into shape for a growing rental market.
“Backed by their recent Santander securitisation deal, Signature now has the lending firepower that our clients need to seek out opportunities, get deals done and focus on delivery.”