Development of 22 units in two blocks

Background

The client was a company which owned a development site with planning permission to build 22 flats into two blocks.

There was a pre-existing bridging facility secured against the land. Before the client came to us, it had already obtained terms from a lender to provide 100% of the build costs and also the necessary funding to clear the existing bridging facility. The lender however adjusted the terms and reduced the borrowing levels which meant that the package was no longer suitable for the client’s requirements. We were therefore approached by the client to resolve the situation as fast as possible.

Solution

We used the current valuation in place to ensure the Company did not incur any further costs and obtained funding that provided 100% of the build costs and the necessary capital to clear the current bridging facility.

Working under pressure

Ensure the client’s timescales are met and the transaction runs smoothly is an essential part of being a specialist broker in Development Finance. We we’re able to conclude the refinance swiftly, when being let down by his previous lender at the last minute. This helped the client to avoid incurring substantial default fees under the existing bridging facility.

Development Facility: £6m plus interest

Term: 18 months

GDV: £10.8m