The deal was introduced to the bank by Adrian Carey, associate director at PIA Financial Group, on behalf of the client.

The borrower secured the purchase with a 5% deposit and exchanged contracts off-plan in 2019, after which he spent the next 18 months securing a blue-chip tenant willing to commit to a 10-year occupational lease of the commercial space — which increased the market value of the unit by £3m.

The bank agreed the loan using the new market value of the property, rather than the purchase price, and was able to provide the necessary facility over a three-year term, which covered 100% of the funds required by the client.

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Gerard Morgan Jackson, head of structured property finance at UTB, said: “This was an unusual case, but we enjoy working with and supporting experienced investors like Brixton Developments, which have an eye for spotting commercial and residential opportunities and the skills to add significant value to buildings and land.

“Our relationship with Adrian at PIA and our willingness to take a pragmatic and commercial view of the enhanced value of the property enabled us to provide a competitive solution which met all of the client’s requirements.”

Adrian added: “This was a very interesting proposition and It took a lender with the ability to take a commercial view to make it work. 

“The team at UTB were excellent throughout [and] were able to use the uplift in value that the lease created to structure a deal that worked perfectly for my client.”