DEVELOPMENT EXIT FINANCE FOR EXPERIENCED BUILDER-DEVELOPER IN ABERDEEN

Area
Aberdeen
Capital Raised
£1.5M

Successful developers with an established track record can nonetheless run into finance problems when they move beyond their own funding circle – especially in parts of Scotland.

The Scenario

Our client was an experienced Scottish developer who had self-financed her last two projects in Aberdeen. Now her private lender was calling in their £500,000 loan. The builds were complete but the sales phase could take 6-12 months to return the funds.

At the same time, a new development site had come available that she wanted to buy immediately. She was looking to repay her private loan and access a further £1M to finance the next project.

The Solution

This was a very experienced developer with a successful track record. The GDV of the two sites nearing completion was £3.5M.But she had been turned down for finance.

The issue was location. Aberdeen’s oil boom is over and lenders for Scotland are reluctant to look beyond Glasgow and Edinburgh.

Plus she needed finance fast to catch this opportunity, and to keep her builders busy.

The terms of her private loan weren’t very competitive; we were confident we could get her a better rate, and with the projects at practical completion stage we took her application to a lender we believed could be persuaded to look north of the Edinburgh-Glasgow corridor.

We had an offer of terms the same day, a valuation in hand three days later, and an offer for our client within another three days.

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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