Signature Property Finance has completed a heavy refurbishment bridging facility to support the transformation of a two-bedroom elevated bungalow into a spacious four-bedroom home in a popular commuter village, near Lancaster.
Introduced by Greg Walters of Chamberlain Capital and structured by Signature Relationship Manager Josh Barrett, this project is a prime example of Signature’s commitment to supporting newly established development businesses that have sound plans, strong local knowledge and a clear route to value creation.
From undercroft to family home
The property was originally a two-bedroom detached bungalow with a garage and undercroft void. The approved project will see the undercroft converted into an entrance hall and bedroom, with the loft adapted to provide a fourth bedroom, transforming the property into a much larger and more desirable family home.
The borrower, Titanium Property Ventures Ltd, is a newly incorporated SPV led by an experienced property investor with a background in residential refurbishments. Working with a team of trusted subcontractors, the company will carry out a series of internal works, including:
- Full strip-out and internal remodelling
- Conversion of undercroft and loft space
- New kitchen, bathrooms, windows and doors
- Heating system upgrade, including air source heat pump installation supported by a local council grant
The property’s EPC rating is expected to improve significantly as a result of these upgrades.
Funding structure and delivery
Signature agreed a gross facility of £222,000, with a net advance on day one of £132,00 (66% of purchase price). The £62,000 refurbishment budget, which includes a 7.5% contingency allowance, will be drawn down in certified stages
The works were costed and approved by DPT Consultants, who will monitor the project throughout the 12-month loan term. Signature’s decision to fund 100% of the cost of works reflects confidence in the borrower’s detailed budgeting and delivery track record.
The loan is set against the property’s current market value of £200,000, with the gross development value (GDV) confirmed at £390,000, representing a 57% LTGDV. No planning permission is required, although the borrower will secure building regulations approvals as required.
Local demand and future value
The well-connected village offers growing appeal to both commuters and lifestyle buyers, with easy access to the M6 and Lancaster via rail. The location offers quiet surroundings while still benefiting from regional infrastructure and employment, ensuring there will be significant interest in the finished development.
Post-refurbishment, the property is expected to achieve a rental income of £19,200 per annum, supporting the borrower’s exit strategy of refinancing onto a Buy-to-Let mortgage. A secondary exit via sale on the open market is also viable, given the significant uplift in value on completion.
Supporting future-ready projects
Signature’s facility has enabled a newly formed development company to deliver a high-impact renovation project, backed by a solid team of contractors and clear commercial rationale.
Josh Barrett, Relationship Manager at Signature Property Finance, commented: “This is a well-structured, locally focused refurbishment project that will result in a modern, spacious home suited to today’s market.
“With a clear plan, trusted contractors and a strong understanding of costs, the client has shown exactly what we want to see from a development-led borrower — vision, clarity, and the ability to deliver.
“We have again clearly demonstrated that Signature will support first-time developers if they have the right team around them and the ambition to deliver high-quality projects. It is great to be part of Titanium’s journey – we look forward to seeing the results on site and supporting them in their next venture.”
Broker Greg Walters of Chamberlain Capital, said: “It is good to work with Josh and the team at Signature, who have made the whole process smooth and relatively simple.
“Communication has been excellent throughout and only adds to the sense that Signature understands the process, both as a lender and from the developer’s perspective – which makes a big difference. I look forward to working with Josh and the team in the future on similar high-quality projects.”