Following a series of successful engagements throughout 2023, Signature Property Finance has continued its strong and successful relationship with an established Scottish development firm, staying true to its ethos of providing first-class, ongoing support to clients that require it.

Having previously collaborated on two sizable deals totaling £620,483, the firm was keen to capitalise on the momentum that had already been generated, replicating this success with the delivery of a new and exciting project. Of course, this willingness to extend the relationship and explore new opportunities together was down to the success experienced in the last 12 months, with Signature demonstrating its steadfast commitment to providing efficient and professional support.

In this case, the client requested a net residential bridging loan worth £100,000 to complete the refurbishment of an unencumbered, semi-detached bungalow that had been completely stripped out and was ready for works to begin, including the provision of a rear extension and attic conversion.

Having previously delivered a wide range of comprehensive renovations, the firm was confident in its ability to complete the necessary works at a cost of £75,000 – an estimation that was supported by an independent valuer, who stated that the figure would also account for any preliminaries or contingencies that might occur.

Through a comparative analysis of similar sized properties in the surrounding area, the valuer deemed its purchase price of £230,000 to be fair and expected the renovated bungalow to achieve a GDV of £350,000 when factoring in the added value delivered by the rear extension. As such, the project represented an important opportunity for the firm to make a healthy profit, whilst providing immediate benefit to those looking for affordable housing.

Situated in a mixed private and former Local Authority residential area, the property will comprise of three bedrooms and two bathrooms once works have been completed – it also benefits from having a wide range of amenities and facilities located nearby. Given the client’s in-depth knowledge of the local property market and their ability to undertake work immediately, it was important that Signature moved quickly to agree a deal on suitable terms so that the opportunity was not lost.

As always, Signature’s experienced team of specialists conducted a thorough assessment of the client’s background and credit situation to ensure the project could be delivered as outlined. Once satisfied, they agreed to provide the full amount on a 12 month loan term, which was deemed to be more than enough time for the firm to renovate, market and sell the property.

To further strengthen the deal, Signature’s Relationship Manager, Scott McClymont also agreed to return to the property within six months to confirm the project was progressing as expected and that the early stages of the marketing period had started. Of course, this agreement was made simpler by the fact the client and Signature already enjoyed a strong working relationship – one that had been built on trust and reliability during previous collaborations.

Commenting on the success of the project thus far, Scott said: “The strong partnership we have formed with the client has been vital to the success experienced across all of the projects, as there is an understanding and chemistry between both parties that allows the entire process to run smoothly.

“It might sound cliché, but in this industry the phrase ‘if it isn’t broke, don’t fix it’ really does ring true, and considering the success of last year’s engagements, it feels as though the client also sees it from this perspective which is why they have extended the relationship into 2024.

“Of course, we judge each project on its own merits and only make lending decisions once we are confident in the vision and feasibility of the project. Therefore, it should come as no surprise that these checks were quickly passed, such are the capabilities of the client to undertake projects of this size.

“Given the success of all three projects, I am confident there will be many more to come in the remainder of this year and beyond. I’d like to thank the client for their continued trust – they have been a pleasure to work with throughout.”

The developer added: “Since the first day of working with Signature, they have impressed us with their in-depth knowledge of the property market and the professional yet efficient approach they take when assessing each project. They have always gone above and beyond to agree deals on suitable terms, making our job a lot easier during the development phase.

“The fact that this is our third project together speaks volumes about the relationship we have built and I’m sure there will be many more to come in the near future.”