Hybrid Development Finance Solution Before Practical Completion for Falmouth Developer

Area
Falmouth
Capital Raised
£500K

Many clients come to us looking for an injection of cash at the phase of development between wind-and-watertight and practical completion. Together with a funder we work closely with, we've developed a cost-effective hybrid finance solution.

The Scenario

Our client is an experienced Cornish developer: their family-run company was working its way through a five-unit project in Falmouth with a current site value of £1.25M.

They had agreed a deferred payment option with the landowner to buy the site with planning permission: £X-hundred thousand now, or with a £200K premium later. Going with the deferred payment option, our client had cash in hand to fund the build costs and the project got underway.

However, when the time came to repay the landowner they didn't have a unit at practical completion. Two were wind and watertight, and the other three had groundwork and foundations completed.

A local lender they'd used before didn't have the resources for this kind of higher-risk setup. And that's not unexpected: many development finance lenders are unwilling to get involved in projects that are part-complete. 

By the time they came to us they needed an alternative finance solution which could be put together fairly swiftly. 

The Solution

We sourced short-term finance for the £550K they needed, at a market-leading rate of 0.5% rate per month.

At this low rate they can keep their cash reserves to pay for building works, and to put towards future projects: an excellent solution all round. 

Read our blog about our hybrid development finance solutions

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.

Contact Us