We deliver the property funding solution for your individual needs
We deliver the property funding solution for your individual needs

Case Studies - Property Development Finance 

Please see below some recent examples of our successful funding solutions for property development projects where the client was looking to reduce their cash injection and / or build out more schemes.

 

 

Case Study 1

Our clients' Bank had declined to support a new build project on the South Coast because they felt they had insufficient experience. Our client had successfully built out a smaller scheme but this was deemed insufficient for the incumbent lender. The client owned the land outright and it had planning permission to build four houses. Using our contacts and experience we were able to deliver the finance that our client wanted through a specialist lender who liked the project and believed that our client could deliver.

 

Property Development Value £1,100,000
Loan amount £700,000
Loan to Cost 78%
Loan to Value 63%
Lender Arrangement Fee 2%
Rate 9% p.a.

 

Case Study 2
Our clients acquired a former nursing home in Kent with planning permission to convert it into eight flats. The clients had a poor credit score, which, combined with the fact that they were embarking on a larger project than before, meant that their existing lender declined to get involved. The land was acquired for cash following the sale of other assets and we approached a specialist lender who was willing to take a supportive view against the overall background. We were able to deliver the full development costs.

 

Property  Development Value £2,000,000
Loan amount £850,000
Loan to Cost 55%
Loan to Value 43%
Lender Arrangement Fee 2%
Rate 1.25% per month

 

Case Study 3
A very experienced Home Counties' developer approached us after his long established lender would not support his latest scheme -  building six new Executive Homes. The Bank remained very supportive of the Client but would not fund this particular site as the valuation highlighted issues that they felt would adversely affect the sales demand. We took one of our lenders to the site and they believed that the project was supportable. The client had bought the site for cash and worked it up the planning. Their preference was to build three units first and then fund the second phase through sale proceeds. We delivered a successful solution to the client and the lender.

 

Property  Development Value £2,100,000
Loan amount £1,000,000
Loan to Cost 65%
Loan to Value 48%
Lender Arrangement Fee 1.5%
Rate 7.5% p.a.

 

Case Study 4
An existing client introduced a friend to us after his lender had withdrawn their offer after receiving a Quantity Surveyor’s (QS) report.  The new client was very experienced and was building two luxury Executive Homes in a very affluent part of Surrey. We asked one of our lenders' QS to have a look at the costings and he was comfortable with the numbers. We were then able to refinance the existing land loan and deliver the full development costs as the client was willing to offer some additional security in order to keep fees down. A happy new client!

 

Property Development Value £6,600,000
Loan amount £4,000,000
Loan to Cost 78%
Loan to Value 61%
Lender Arrangement Fee 1.25%
Rate 7.5% p.a.

 

Case Study 5
An experienced developer had a number of schemes with their current lender that had not fully unwound, and the lender wanted to wait for progress on these before supporting a further scheme that the developer wanted to start. The client did not want to wait as he had bought the land and managed to enhance the planning permission to enable him to build four new detached houses. The scheme was ready to commence and we were able to support all of the development costs as we could demonstrate that our client was a successful developer and that all of his existing schemes were satisfactory in their own right.

 

Property Development Value £1,400,000
Loan amount £715,000
Loan to Cost 80%
Loan to Value 51%
Lender Arrangement Fee 1.5%
Rate 7.5% p.a.

 

Case Study 6
A private individual with no real development experience wanted to build six houses on the South Coast. He owned the land and then formed a Joint Venture company with a local reputable developer. Given the expertise now involved we were then able to deliver the full development costs and provide him with a successful solution.

 

Property Development Value £2,500,000
Loan amount £1,350,000
Loan to Cost 74%
Loan to Value 54%
Lender Arrangement Fee 1.5%
Rate 7% p.a.

 

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