A deal that changed shape mid-underwrite – and the lender that did not walk away
Hope Capital Property Finance has completed a £2.3 million development exit finance and refinance in South Luffenham, Rutland.
The security comprised four apartments within a converted watermill, alongside two Grade II listed two-to-three-bedroom houses from an adjacent pub conversion.
The original application covered six apartments and two houses. Two apartments reached agreed sales during the underwrite and were removed from the security pool. Hope Capital restructured its terms accordingly and proceeded to completion with charges over the remaining four apartments and two houses.
Lending terms were set at 70% loan-to-value across a 12-month term, with a monthly rate of 0.82% retained on day one. The transaction required a full independent valuation, with title insurance secured to support the conveyancing process.
The deal also involved the transfer of ownership between two limited companies. This was an additional layer of structural complexity that required careful title management throughout.
Why development exit finance demands lender flexibility
Development exit finance on converted heritage assets is among the most technically demanding cases a broker can place. Listed building status, evolving title structures, and company-to-company ownership transfer all demand lender flexibility mid-deal.
That flexibility was central to this case. The withdrawal of two units fundamentally changed the security available – a scenario that causes many lenders to reprice heavily or withdraw entirely.
For brokers in specialist finance, identifying lenders that can adapt mid-deal without killing completion is a vital skill. Developers are increasingly using exit finance to manage staged sales rather than selling under pressure. Brokers who can assess lender character before submission save their clients significant time and cost.
Max Mace, director at NM Finance, introduced the deal and said mid-deal adjustments were unavoidable.
“Given the evolving elements of the deal it was essential that we were able to work with a lender who could make major adjustments to the terms of the loan without derailing the deal,” he said.
Andrew Bate (pictured above), senior underwriter at Hope Capital Property Finance, said the experience was a defining one. “A deal like this demands real focus and flexibility at every stage,” he said.
Hope Capital’s current position
The completion arrives as Hope Capital continues a period of significant growth. The Liverpool-based lender recently secured a £35 million committed wholesale funding facility with Hampshire Trust Bank, its first bilateral facility with that institution.
Applications rose 86% between the end of 2024 and end of 2025, according to Hope Capital. Loan book value climbed 61% over the same period.
The lender operates across England, Wales, and Scotland, offering loans from £100,000 to £5 million. Fixed rates start from 0.80% with a maximum 75% LTV.
Placing development exit finance on heritage assets
This was the first deal between NM Finance and Hope Capital Property Finance. Mace described communication with National Account Manager Sam Lea as seamless, despite it being their first working arrangement.
There is a growing pattern of lenders structuring products around exit timelines – stepped rates, early redemption incentives, and bespoke terms that reward an on-schedule exit. Grade II listed properties carry planning and consent constraints that add time and uncertainty to any exit strategy. Historic England’s guidance on listed building consent underlines why heritage assets require specialist lenders.
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