Development Finance For A Grand Design

The Scenario:  

The clients, a married couple, purchased a plot of land with an existing property on it for £500K. They intended to build a brand new property on the land and demolish their existing property.

The clients had limited development experience and did not have enough capital to finance the works themselves, as they only had a combined annual income of £50K.

The couple were living on site and required £400K, which equated to 100% of the building costs, to complete their project.

Traditional lenders refused to lend to the clients. This was because of the clients’ lack of property development experience. The high street lenders were also hesitant to approve development finance, due to the plans to demolish the clients’ existing property.

Our Solution:

We arranged a short-term mortgage, through one of our specialist lenders, with a term of finance that suited our clients’ requirements. This provided our clients with the necessary funding they needed to complete their project.   

Once the property is habitable, it will be refinanced onto a high street lender mortgage with an expected completion value of £1.3M

Do you need development finance? Are you in a similar position? To investigate your finance options call our team on 0117 959 5094 or fill in our call back form.