LHV Bank has completed a landmark social impact transaction – a 5-year fixed rate buy-to-let facility – to refinance two supported housing assets leased to a charity, enabling the borrower to unlock equity and scale its provision of homes for vulnerable tenants.
The deal marks the bank’s first direct loan in the social housing space and was agreed with Vital Homes, a property development group founded in 2022 by James Levy and Elena Pashevkina.
The pair launched the business with a commitment to building high-quality accommodation for tenant groups including prison leavers, survivors of domestic abuse, and people with disabilities.
Within its first year of operations, Vital Homes built a portfolio worth £6.5 million, acquiring and refurbishing properties to a high standard before leasing them to local authorities or charity partners.
FUTURE ACQUISITIONS
The properties refinanced in this deal are located in Wallasey and Birkenhead and had been acquired with bridging loans. Both are now configured as Houses in Multiple Occupation (HMOs) and under long-term leases to a registered charity. The new LHV Bank facility replaced the short-term finance and provided Vital Homes with capital to reinvest in future acquisitions.
Edwin Yamoah, Lending Director at LHV Bank, who led the deal, says: “This transaction reflects LHV Bank’s growing focus on supporting socially responsible housing initiatives.
“We were impressed by the impact Vital Homes is making through its partnerships with local authorities and charities. These are exactly the sorts of deals we want to support. Specialist housing models that fall outside the norm but are underpinned by strong operators and long-term income.”
FLEXIBLE APPROACH
To complete the deal, the bank adopted a flexible approach, working with a specialist valuer outside of its standard panel and agreeing to lend against market value — despite the loan exceeding typical limits based on vacant possession value. The loan moved from credit approval to drawdown in just 31 calendar days, enabling Vital Homes to avoid further bridging interest costs.
Vital Homes’ co-founder and COO, Elena Pashevkina, adds: “There’s often a disconnect between what communities need and what traditional property finance is set up to support.
“That’s why working with a lender who sees the bigger picture is so important. LHV Bank brought insight, pragmatism and pace, and their backing sends a strong signal about what the future of socially responsible housing finance could look like.”
HIGH QUALITY
And James Levy, co-founder and CEO of Vital Homes, adds: “Our focus has always been on delivering high quality homes for those most in need, and LHV Bank understood that from the first conversation. They didn’t try to force our model into a standard box, but took the time to understand how we work and were practical throughout. Having that level of flexibility and responsiveness from a lender makes all the difference.”
The deal follows a recent £5 million commercial real estate facility from LHV Bank to refinance two specialist care home assets, also leased to a charitable operator.
Conor McDermott (main picture), Director of SME Lending at LHV Bank, says: “We’re increasingly working with borrowers who want to move away from speculative growth strategies and instead focus on assets that offer reliable cash flow, development upside, or long-term social value. In that context, our partnership-led approach really comes into its own. We’re here to offer support that’s grounded in the real world, and to move quickly when a deal deserves it.”
