Property Finance For Inexperienced Developer

Area
Oxfordshire
Capital Raised
£2.2M

The Scenario:

The client was looking to purchase a piece of farmland in Oxfordshire with the view to renovate the farm house building into a high end luxury home.  Upon purchasing the farmland, the client realised the potential of the plot and decided that he wanted to build three additional houses.  The client believed that the value of the development would double if he was able to execute his new plan.

Although the client had a number of high value properties in London, the lender who provided the £1million would not allow the money to be used for the purpose of development, as the client had no previous development experience.  Without adequate property development finance the client was in danger of losing out on an attractive investment opportunity.

The client required £1.7million to repay his existing lender and complete intended development. After four months of searching using an existing finance broker, the client was not able to source the additional funding required. The client approached Clifton Private Finance for assistance.

Our Solution

The majority of lenders are reluctant to lend to an inexperienced developer. However, due to our strong links with private banks and specialist lenders, we were able to secure the £1.7million and finalise favourable terms of finance to suit the client within five days. 

Knowing that property development can be unpredictable with many unforeseeable costs, we sourced an additional £500K through a mezzanine loan. This acted as a ‘safety net’, in the event that the client incurred any unforeseeable costs that he had not budgeted for.

The £1.7 million and the £500K mezzanine loan enabled our client to complete his development without any unnecessary delays.  The development is expected to sell for £5million which will provide this first time developer a healthy profit.

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.

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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