£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.

 

 

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Have a similar situation? I'm a specialist in residential and investment property finance for UK and international clients. I look forward to hearing from you.

Luther Yeates

Finance Broker

Bristol

0117 244 5561

Have a similar situation? I am a specialist in residential and investment property finance for UK and international clients. I look forward to hearing from you.

James Palmer

Senior Associate

London

0203 900 4322

Have a similar situation? I specialize in development and commercial finance and can provide creative solutions for your property funding requirements.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Have a similar situation? I specialize in bridging finance and can provide creative solutions for your property funding requirements.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Require mortgage or short term finance for residential or buy to let property (including HMOs and limited companies)? I have extensive experience on providing property finance solutions for UK and International clients.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Are you in a similar situation? I have extensive experience in advising clients on providing creative property finance solutions. I look forward to hearing from you.

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