£1.3M Bridging Loan For Property Development In Chelmsford

Area
Chelmsford
Capital Raised
£1.3M

Access to quickly available finance at rates that allow for a good return on investment are essential to every builder-developer.

The Scenario

Our client had identified a prime development site on the outskirts of Cheltenham: the tattiest house on a desirable street which was ripe for a knock-down-rebuild. It was on the market for £800K and he had made an offer of £730K.

He had an engineering company which he also used to buy and develop property. He intended to do the building works himself, rebuilding a higher-spec house at an estimated cost of £500-£600K, for a GDV of £2M. 

He was looking for a development bridging loan of £1.3M to purchase and develop the project, with a planned completion and sale within 18-24 months

The Solution 

There was no cash available for the project because the company's order books were full. But there was an impressive portfolio of unencumbered commercial properties valued at £5M. Combined with a charge against the property being purchased, that allowed us to leverage an LTV (loan-to-value) of less than 65% (LTV), gaining an advantageous rate. 

With bridge finance in hand, our client managed to purchase the property for £750K; the remaining £550K funded the building works and marketing. Achieving the selling price of £2M netted a very healthy profit of nearly £700K.

 

 

Mathew Phillips

Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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