Signature Property Finance has completed a £92,650 light refurbishment loan to support the purchase and upgrade of a four-bedroom terraced house in Abercynon, backing two property professionals embarking on their first joint investment project.
Introduced by Ben Gauci of Cornerstone Finance, the transaction highlights Signature’s support for first-time borrowers who bring relevant industry experience and well-considered investment strategies.
Industry professionals entering the investment market
The borrowing company is led by two directors who both work for a major UK residential development company, bringing direct experience of property construction and project delivery. The newly incorporated entity was established specifically to pursue property investments in the South Wales.
The property was acquired for £79,000 with plans for comprehensive internal upgrading. Signature’s facility is set at 66% loan-to-GDV and 85% loan-to-cost against a gross development value of £140,000, providing day-one purchase funding plus 100% of the improvement costs released via staged drawdowns.
The 12-month term accommodates the refurbishment programme and subsequent sale, with works including full electrical rewiring, new heating system, kitchen and bathroom installations, plus decoration throughout.
Well-connected valley location
Abercynon has a mix of local shops and services, positioned between Mountain Ash and Aberdare which provide additional shopping and leisure facilities. The area appeals to residents and commuters alike, with Abercynon railway station offering regular services to Cardiff and Merthyr Tydfil.
Road connections via the A4059 and A470 provide access to the M4 and wider South Wales network, making the location practical for those working in Cardiff or surrounding areas. The property’s position on a main route adds visibility, while the established residential character supports steady rental demand.
Open market sale
The primary exit is sale on the open market following completion of the improvement works.
The directors plan to carry out some works themselves while employing specialist trades for electrical and plumbing installations, leveraging their construction industry knowledge to manage the project efficiently.
Ben Gauci of Cornerstone Finance commented: “These clients have spent years working in residential development, but this is their first investment property together. Josh recognised immediately that their professional background gave them a real advantage in understanding costs, timescales and what makes a viable project.
“There are affordable entry points in South Wales for investors who understand the fundamentals. At sub-£80,000 purchase prices, these properties deliver attractive returns. Signature’s light refurbishment product suited the project perfectly, funding 100% of the works as they progressed.”
Josh Barrett, Relationship Manager at Signature Property Finance, said: “Because of their day jobs, the borrowers had a lot to offer practically. When you’re working in residential development professionally, you understand what can go wrong and how to budget properly – that experience is invaluable.
“Abercynon offers good connectivity to Cardiff and four-bedroom houses are in steady demand in the area. The sale route is well-supported by comparable evidence.
“Helping newcomers to property investment is something we take seriously, providing they’ve got the right foundations. Working with Ben, who’s put together a comprehensive package, made this much simpler to facilitate. Their pipeline looks promising too.”