The Situation
A professional England international athlete was introduced to Henry Dannell by an experienced property developer, a long-standing introducer whom we have supported across a number of successful development finance cases. The introduction itself was a mark of confidence: this developer understood the complexity of what was being planned and knew that the right structuring support would be essential from the outset.
The athlete had a clear vision for their first move into property investment. Having built significant earnings through their sporting career, they were looking to put capital to work in a tangible, income-generating asset. The plan was well-considered and followed a logical three-stage sequence: acquire a residential property at auction, refurbish and reposition it as a House in Multiple Occupation (HMO), and then refinance onto a long-term investment facility once the works were complete and the asset was tenanted.
It was a sound strategy. The client had strong income, a credible plan, and a clear exit in mind. What they did not have was a development track record. In the world of specialist lending, that absence alone can close doors that would otherwise be open.
The Challenge: First-Time Developer & Time-Sensitive Auction Acquisition
This transaction carried several layers of complexity, each of which needed to be resolved in parallel and within tight timeframes.
Auction Deadline
Properties purchased at auction typically require completion within 28 days of the fall of the hammer. There is no room for the drawn-out credit processes that characterise much of the mainstream lending market. Funding had to be reliable, decisioned quickly, and delivered on time. A delay would mean losing the deposit and the property.
No Prior Development Experience
Despite the client’s financial strength and profile as a professional athlete, the fact that they did not have a track record as a property developer represented a significant barrier. A large proportion of the market, particularly bridging and development lenders, operates with minimum experience criteria that this client simply could not meet, regardless of the merits of the project or the quality of their income.
Dual Funding Requirement
The transaction was not a straightforward purchase. The client needed funding to acquire the asset and a separate, structured facility to cover the refurbishment works, with staged drawdowns aligned to the build programme. Finding a lender willing to underwrite both within a single facility added another layer of complexity.
Exit Dependency
The entire strategy depended on a viable refinance route at the end of the development phase. Without a credible, pre-agreed exit onto an HMO term mortgage, the short-term finance would have nowhere to land, creating risk for both client and lender. The exit needed to be confirmed before the transaction could proceed.
Henry Dannell’s Approach
Our role was to reframe how this client was presented to the market.
On paper, a first-time developer with no track record can appear straightforward to decline. Our job was to ensure lenders looked beyond that single data point and saw the full picture: a high-earning professional with a structured plan, an experienced developer in their network, a credible asset, and a clear, pre-planned exit.
We identified a lender with the appetite and underwriting flexibility to support first-time developers where the overall borrower profile is strong. Lender selection at this stage is critical: approaching the wrong part of the market wastes time that an auction timeline simply does not allow.
We then structured a two-part facility, combining the day-one acquisition funding with a dedicated staged drawdown for refurbishment works. Crucially, we also worked to secure pre-approval on the HMO term mortgage at the outset, so that the exit was confirmed before the short-term facility was drawn. This gave the client confidence in the end-to-end plan and gave the lender comfort that the strategy had a realistic and structured conclusion.
Alongside the lending, we provided advice on protection, reviewing the client’s existing career-related cover and identifying gaps, particularly around critical illness, that were relevant given the planned financial commitments.
The Solution: Refurbishment Finance and Pre-Approved HMO Term Mortgage
We secured a bespoke refurbishment finance facility structured as follows:
The facility was structured to roll interest, minimising cash drag during the works phase and preserving the client’s liquidity throughout the project.
The Outcome
The property was acquired successfully within the auction completion window. Funding was in place and delivered without issue, removing the single greatest execution risk the client faced at the outset.
The structured facility covered both the purchase, and the full cost of refurbishment works, meaning the client was not required to deploy additional capital to bridge funding gaps mid-project. The pre-approved HMO term mortgage gave a clear and pre-confirmed route to long-term ownership, with the refinance set to follow completion of works and tenanting of the property.
On the protection side, additional critical illness cover was recommended to sit alongside the client’s existing protection policies, ensuring their financial commitments were appropriately covered regardless of what their sporting career might bring.
Key Takeaways
Entering property investment or development for the first time does not require an existing track record, but it does require the right structure, the right lender, and the right advice from the outset.
For this client, the critical factors were speed, lender alignment, and a fully pre-planned exit. Getting all three right before submitting to a lender rather than discovering problems mid-process is what made the transaction deliverable within auction timelines.
With the correct approach, it is possible to:
- Move decisively on time-sensitive opportunities such as auction purchases
- Access funding that reflects overall financial strength and borrower quality, not just development experience
- Structure a transaction that connects acquisition, refurbishment, and long-term ownership into a single, coherent plan
Financing Your First Development Project?
If you are considering your first investment or development project, or looking to act quickly on an opportunity, structuring the finance correctly from the outset is critical. The difference between a fundable and an unfundable transaction is rarely the project itself; it is usually how the case is built and where it is placed.
We help clients secure funding, plan exits and align borrowing with longer-term investment objectives. If you would like to explore how a similar approach could work for you, we would be happy to arrange a conversation with our specialist lending team.