Hectocorn recently secured a £3,300,000 facility for a newly established property developer acquiring a freehold house in London with the intention of converting it into four self-contained flats.
This was the client’s first development project. As a result, securing maximum leverage — especially pre-planning — presented a significant challenge. Most lenders require either planning permission in place or a demonstrable track record before offering high loan-to-value terms or funding a development-heavy project.
The client was seeking to maximise their gearing at the point of acquisition and to fully fund the renovation works via the loan, without needing to inject further capital beyond their original deposit.
Despite the lack of planning and the developer’s new-to-market status, Hectocorn successfully structured a 12-month bridging loan with a net loan-to-value of 70% on the purchase price and full coverage of the projected renovation costs.
The loan was priced at 0.95% per calendar month — competitive for the leverage and development risk involved — and was secured against the property in its existing use. The structure gave the client the time and capital needed to secure planning consent and complete the conversion before refinancing or selling the finished units.
This case demonstrates how Hectocorn can unlock tailored finance even for first-time developers working without planning consent. Our lender relationships and structuring experience enabled us to navigate the risk concerns and deliver a flexible facility that empowered the client to move forward with confidence.
Key Deal Highlights
- Loan amount: £3,300,00
- Loan-to-value: 70% net on purchase
- 100% of renovation costs financed
- Planning: Not yet secured at time of loan
If you’re a new developer looking to secure finance pre-planning or maximise leverage on your first project, we’d be happy to help.
Funding Solutions That Take First-Time Developers Further
Frequently Asked Questions
Yes — while many lenders prefer to wait until planning is approved, some will fund pre-planning acquisitions if the exit and strategy are strong. In this case, we secured 70% LTV plus 100% renovation finance with no planning consent at the time.
It’s more complex, but yes. We work with lenders who are open to backing new developers — especially where the location, property type, and renovation plans are clear and achievable.
Yes, if the lender is confident in the uplift and exit plan. In this case, 100% of the renovation costs were included within the loan facility, with staged drawdowns during the works.
Terms usually range from 6 to 18 months. This project was structured over 12 months to allow time for planning approval, conversion, and either refinance or sale.
Very quickly. This facility was secured and completed within weeks — lenders in our network are used to moving fast, especially for competitive acquisition scenarios in London.