£2.8M Development Finance for Historic Residential Redevelopment

Securing Development Finance for Fairlea Residential Home Redevelopment

Our clients, Fairlea House Ltd, embarked on an ambitious project to transform the former  Residential Home in Northam, Devon — a Grade II listed late 19th-century building — into a modern residential development with a Gross Development Value (GDV) of £4 million.

The Challenge

This redevelopment faced several hurdles:

• The site was live with ongoing construction works
• Existing loan balances fluctuated due to multiple drawdowns from the current lender.
• Compliance with listed building requirements and managing rising construction costs.
• Coordinating funding across a complex and evolving financial structure.

What We Did

To overcome these challenges, we maintained constant communication with the lender, monitoring surveyor, and client. Our proactive approach ensured:

• Accurate tracking of the loan balances and project financials.
• Timely adjustments to the funding structure based on ongoing construction needs.
• Strategic negotiations to secure a £2.8 million development loan with competitive terms, including a flexible repayment schedule and favourable interest rate.
• Coverage of construction, materials, and compliance costs, enabling smooth progress without delays.

The Outcome

The loan facilitated the transformation of the historic building into nine high-quality apartments (including one 1-bedroom, seven 2-bedroom, and one 3-bedroom) alongside five new 3-bedroom houses. The development preserves the building’s heritage while providing desirable modern homes, complemented by landscaped gardens and parking facilities.

This project is expected to:

• Stimulate local economic activity and create jobs.
• Deliver much-needed housing in a picturesque North Devon location.
• Showcase how tailored financing and collaborative planning bring visionary developments to life.