# Loan provided for redevelopment of Mail Delivery office in London

Case study · United Kingdom · Published 2019-03-18 · Updated 2026-06-09 · By Rikvin Capital

> Location: London, United Kingdom Market Value: £2,650,000 Loan Amount: £1,500,000

## Deal summary

| | |
| --- | --- |
| Asset Type | Commercial Building |
| Locations | London, United Kingdom |
| Loan Amount | £1,500,000 |
| Loan-to-Value | 55% |
| Market Value | £2,650,000 |
| Duration of Loan | 6 Months |
| Payment Schedule | Balloon + Monthly Interest Payment |
| Completion Time | 10 Days |

**Commercial banks in the U.K. rarely provide loans for redevelopment projects.**

## Problem

- A corporation had plans to purchase an old mail delivery office for redevelopment.
- The company needed financing but was unable to obtain it from traditional banks, who rarely lend to redevelopment projects.

## Solution

- Rikvin Capital performed the necessary due diligence and underwriting and found that the property was in a prime location.
- We were able to provide the loan at 60% LTV for a period of 6 months with a first charge on the property.
- This enabled the borrower to purchase the property and apply for planning.
- The borrower later refinanced the property after receiving planning permission.

**Related:** [Read about when Rikvin Capital provided financing for purchasing property in the UK](https://www.rikvincapital.com/case-study/financing-provided-for-purchasing-property-in-uk/)

- **Location:** London, United Kingdom
- **Market Value:** £2,650,000
- **Loan Amount:** £1,500,000
- **Loan-to-Value:** 55%
- **Duration of Loan:** 6 Months
- **Payment Schedule:** Balloon + Monthly Interest Payment
- **Asset Type:** Commercial Building
- **Completion Time:** 10 Days

## Frequently asked questions

### Banks will not fund my UK redevelopment project. Can Rikvin Capital help?

Yes. The London case here lent £1.5 million against a £2.65 million former mail-delivery office (55% loan-to-value) in 10 days for a redevelopment that high-street banks would not fund. We lend on the existing property value and the borrower's plan, then exit via long-term refinance once planning is granted.

### How does redevelopment-bridge financing work?

We lend against the current value of the building (its existing-use value), giving the developer time to apply for planning approval. Once planning is granted, the property's value rises, and the borrower refinances into either a development-finance facility or a long-term commercial mortgage at the higher valuation.

### What is a "balloon plus monthly interest" repayment?

The borrower pays monthly interest through the loan term, with the full principal repaid as a single lump sum (the "balloon") at the end. The London mail-office case used this so the developer's cash flow was predictable during the planning period and the principal was settled at refinance.

---

Markdown version of https://www.rikvincapital.com/uk/case-study/rikvin-capital-provides-loan-for-redevelopment-of-mail-delivery-office-in-london — provided by Rikvin Capital for AI agents. Site index: https://www.rikvincapital.com/llms.txt