£1M-Plus Development Finance in Essex to Finish and Exit

Area
Essex
Capital Raised
£1.1M

We arranged exit finance for another scheme by this developer, and he was delighted for us to set up a similar solution on this project. 

The Scenario

The property was a high-spec luxury home (six bedrooms, four bathrooms, big garden…) being built by our HNW experienced developer client. It’s just outside the picturesque medieval market town of Saffron Walden, an hour’s commute from London.

His properties are finished to a high standard - there was no more than three to four weeks’ work remaining to be done on this scheme: final fix, the completion of decoration, plus landscaping and installation of electric gates.

But there was a hard deadline to getting this finance in place. Our client’s £1.05M development finance was coming to an end, and in less a month his borrowing currently costing 1% a month would go onto his lender’s default rate.

This wasn't the right structure of lending for this client: a 12-month deadline on new-build finance is very restrictive, even for an experienced builder-developer. His current lender wasn't willing to extend the loan term by even a few weeks, and their default rate is punitive.

The challenges: standard bridging finance wasn’t an option because the project wasn’t yet at practical completion.

And many financers aren’t keen on large single asset lending – they like the safety net of having their risk spread over a number of residential units which could be sold off to recoup their capital, if necessary.

The Solution

We work with a specialist lender who has developed a niche finance solution for exactly this kind of situation.

Within two days we had an offer of finance for the £50K needed to complete the building works, plus the £1.05M our client needed to repay his original lender. Lending was offered at 0.99%, secured against a valuation of the property in its current state at £1.5M.

The GDV on completion was valued at £1.6M, giving our client the option to exit onto a buy to let mortgage at 75% loan to value.

He’s very pleased, and we’re proceeding with refinancing his other development sites.

Our development finance service

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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