A developer with 20 years' experience was introduced to us because his existing bankers were unwilling to provide sufficient further funding for a new site with planning consent for the erection of 8 four-bedroomed detached houses, whilst some existing developments were on the market for sale.
A series of individual bridging loans were offered on properties pending completion of sales, together with a development loan to clear the existing site loan facility with his clearing bank and to provide 100% of construction costs. This finance provided sufficient capacity to refinance the existing loan. As a result of our flexibility, we have won a new and valuable customer and have provided that customer with further time to sell completed units whilst enabling a start on site for the new development.
Loan: £2.5 million
Loan to value: 65%