Development finance to redevelop and sell a family home in Wimbledon

Area
Wimbledon
Capital Raised
£1.94M

Knock-down and rebuild can be a very profitable option for older properties in very desirable locations. But for families developing properties that have been the family home there are additional funding challenges.

The Scenario

Our clients were a mother and her two sons. The property was a six-bedroom house in Wimbledon Village that had been the family home since the mid-1980s, until the father died.

The home had been let out for the last 10 years and was now looking tired: it was the last property in the street not to have had a substantial makeover. Even though its current value was £2.2M, the average price of a detached home in SW19 in mid-2018 was £2.9M (more than you'd pick up winning the All England singles trophy).  

And on a plot of this size, in a prime location, the family were advised that if they knocked down and rebuilt, a high-spec home would sell for £5.2M.

The Solution

Despite the impressive projected gains, this was not a project that lenders were rushing to finance. The family were first-time developers. And lenders get nervous about single-unit projects above £1.5M.

Plus, because this had been the family home, even though it was no longer lived in by the family this would be a regulated loan. There are fewer lenders in the regulated market, and the Financial Conduct Authority (FCA) puts a ceiling of 12 months on the lending.

We focused on the fact that this was a regulated development loan, for which terms might be extended beyond 12 months. There are a very small number of lenders working in the regulated development market: our job was to package this for them, demonstrating the balance of the opportunity and the projected value, and the fact that the family had a fixed-price, fixed-term build arranged, with an experienced project manager.  

We managed to arrange development finance for them extended over 18-months: a 12-month build and six-month marketing period. 

Speed was also critical for this deal. We had the framework completed within four weeks. Allowing for the clients to reorganise some of the critical factors, we delivered funding to them within eight weeks.

Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need.

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

Senior 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 a time that's convenient for you to discuss your situation.

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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