Secure Trust Bank has provided a £3.9 million development loan for the restoration of a Grade II listed property in Surrey and the construction of additional residential units on the site.
The Harps Oak Lane scheme, developed by Paarl Homes, will comprise 10 family homes within a gated development. The project involves bringing a site that has been vacant for several years back into residential use.
Development structure
The development will include two four-bedroom properties and eight three-bedroom houses. Six homes will be created through the restoration of 16th and 17th century buildings, whilst four will be new-build timber-frame constructions. Floor areas range from 905 to 2,256 square feet.
The loan has been structured over a 24-month term with a 12 to 15-month build period. The loan-to-gross development value stands at up to 65%. Practical completion is scheduled for October 2026.
The facility includes a 12-month post-completion period for the developer to exit through property sales. The structure also permits Paarl Homes to retain properties as rental assets under an investment loan if required.
Technical specifications
The timber-frame new builds are designed to reduce construction timescales. The restoration work on the historic buildings will follow guidance from the local council’s conservation officer.
New-build homes are designed to achieve Energy Performance Certification ratings between A and B. All properties will be covered by a 10-year new-build warranty for latent defects.
James Taylor, director at Paarl Homes, said: “Secure Trust Bank has always offered a flexible approach. The team understands the complexity of restoring listed buildings and tailored their loan to account for this, allowing the time needed to deliver a high-quality collection of properties.”
The financing follows a previous collaboration between the bank and Paarl Homes on two properties in Tadworth, which achieved record sale prices in the area.
John O’Leary, senior relationship director at STB real estate finance, said: “Working with James is always a pleasure. The homes he builds are of the highest quality, which is reflected in the prices they achieve on the market.”
Professional advisers on the transaction included Clarke Willmott Solicitors, led by Clare Gregory, Anderson Wilde & Harris, led by Paul Tebbutt for valuation, and Martyn Lorimer of Cluttons as independent monitoring surveyor.