Hampshire Trust Bank has provided £2.4 million in development finance for a mixed-use scheme in Mitcham, South West London, delivering eight residential units and two commercial units on a high street site.
The facility, introduced by broker P10 Financial Group, will support a development targeting first-time buyers, young professionals and investors, alongside businesses requiring commercial space. The project forms part of ongoing regeneration activity in the South London suburb.
Flexible structuring required
The transaction required adaptation to accommodate a planning gain delay and early-stage challenges around contractor engagement. Hampshire Trust Bank adjusted the facility structure as the project evolved, working with the broker and client to maintain progress.
“The project evolved as it progressed, and it was important that the funding reflected those changes while maintaining certainty for the borrower,” said Sarah Dix, lending director at Hampshire Trust Bank. “By working closely with the broker and client, we were able to support the development through those challenges and keep it moving forward.”
Dix led the deal, supported by Athens Piponides, Scott Apps and Gemma Pyhpers. Jack Grey, associate relationship manager at P10 Financial Group, introduced the transaction for a longstanding client.
“While the development presented challenges, a collaborative approach between lender, adviser and borrower ensured these were worked through, and the facility remained aligned to the needs of the scheme,” Grey said.
SME developer financing challenges
The deal establishes a new borrower relationship for Hampshire Trust Bank while building on an existing connection with P10 Financial Group. Neil Leitch, managing director of development finance at the bank, noted that smaller-scale developments face distinct challenges.
“Smaller-scale developments like this are a key part of how new homes are delivered in established urban areas, but they rarely follow a straight path from planning through to delivery,” he said. “Delays, changing requirements and practical challenges on site are part of the reality for SME developers.”
The financing comes as UK property sales declined 6.7% year-on-year, highlighting the importance of flexible funding structures for development projects. Industry observers note that specialist lenders play a role in supporting schemes that require adaptability, particularly as property valuations face increased scrutiny from regulatory authorities.
Leitch added that specialist lenders provide “the flexibility and continuity needed to keep developments moving and bring forward regeneration at a local level.”
