Unlocking £4M Value Through Strategic Planning

The Opportunity

ERG Finance were introduced to an off-market opportunity via one of our key estate agency partners. The asset in question was a large former commercial building with surrounding land, marketed at £2,250,000.

The vendor had prepared draft plans to convert the main building into apartments alongside 12 townhouses. However, our client had a very different vision – to pursue planning for one substantial unique dwelling within the main building, and three detached executive houses within the grounds.

The Challenge

The client exchanged unconditionally, with a 12-week completion deadline. During this period, works were undertaken to enhance the site and pursue planning, with the goal of significantly increasing value.

To achieve the required facility, we needed:

• A lender who would recognise planning gain between exchange and completion as part of the deposit contribution.

• A valuer with development and planning expertise.

• Solicitors prepared to work proactively and to tight deadlines.

The Outcome

Planning was granted for the revised scheme, and the uplift in value was substantial – over £4,000,000 between exchange and completion.

ERG Finance successfully secured:

• Net facility of £2,100,000 on day one against the £2,250,000 purchase price.

• Further £300,000 facility to support the conversion of the main building.

  
  

Conclusion

This case is a strong example of how ERG Finance brings together the right lender, valuer, and legal team to deliver exceptional outcomes. Through strategic planning and effective collaboration, our client not only completed on the purchase but also unlocked substantial additional value.