A developer purchased a 1.5 acre site in the heart of a lovely village in Lincolnshire. The site had detailed planning consent for seven detached houses.
A clearing bank provided funding to assist with the initial purchase and the Phase 1 construction of three units at the front of the site. The developer wished to begin Phase 2, before Phase 1 was sold, but the clearing bank would not allow him to progress. The developer approached us to provide funding to build out the remaining four units on the site. We provided funds to allow the existing bankers to release the rear of the site, and were able to lend a higher percentage of build costs before the first phase was sold.
Our initial loan to site value was 45% and we provided 100% of the construction costs. Our customer completed the development and sold all units on schedule. We are now assisting the customer with his next development.
Loan: £1 million
Loan to value: 49%