£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

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 to discuss your situation at any time that's convenient for you.

James Palmer

Senior Associate

London

0203 900 4322

Are you looking for similar property finance? I specialise in development and commercial finance for Clifton - I can find creative and commercially effective solutions for your project.

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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