Property Development Bridge Loan For New Build Dream Home

Property development can sometimes prove difficult to come to fruition – especially when a loan cannot be secured months into development when funds run dry.

In difficult times, you'll need a broker by your side to help raise fast finance for complex situations.

The Scenario

Our clients approached us after a difficult five months spent working with another broker – they'd had issues in sourcing a loan of £90k, as it was below the minimums of the lenders on their panel. 

They'd now run out of funds during the development of their dream property.

It was located in Stevenage and valued at £600k – with a projected GDV (Gross Development Value) of £800k when completed.

The problem was the funds they needed could only come from a property development bridge loan and were necessary to complete the work.

Our clients were stuck. They had an unfinished development project – which required significant costs – and had unsuccessfully attempted to secure a loan in the prior five months.

Our clients' exit strategy would come in the form of equity release on the new property once the development was completed.

This was a natural and solid repayment plan – yet, they still had not managed to get the loan they needed.

Time was increasingly becoming a factor, and additional challenges – i.e., the size of the loan, the uniqueness of the property and its construction – were complicating matters further.

The Solution

Here’s what we did for them:

• Despite previous difficulties, our broker managed to find a suitable lender offering the best rates at the loan size they needed to complete the work - £90k at 0.84% interest per month.
• Agreed on a term of 12 months – allowing them the opportunity to repay the loan in plenty of time with equity release from the finished property.
• We gave our clients recommendations on a solicitor to employ, which greatly sped up the process.
• From application to completion – we managed to secure our clients the property development loan they needed within 2 months.

Based on their previous experience - five months of broker relations without securing a loan – our clients could have potentially not finished their development project if we hadn't stepped in.

Thankfully, they came to us, and our expert bridge loan broker guided them through the process, recommended a solicitor, and chased through their application to get the funding through.