Development exit for mixed new build bungalows and heavy refurb of 4000 sq ft detached dwelling in the Midlands
The Story of Woodland Mews.
Having helped fund the development of an exciting site of three new build bungalows and the extension and complete refurbishment of a rundown detached five bed property, our client came to us at the end of last year with the goal to put in place a short-term bridge to deliver additional sales time. They also needed to raise maximum capital in order to fund the acquisition of a new scheme and to start preliminary works on an existing site.
Funding and the challenges faced.
Our client had already sold one plot and had offers on another, so the imperative was to find a lender offering the lowest possible rate to minimise interest, as sales were likely to come in quickly. However, it was also imperative to achieve the highest Loan to Value possible. The aim was to fulfil these requirements all within the very short time frame available before the development loan came to term. All this, of course, within an extremely challenging market!
Our solution and the result.
We proposed a number of lenders capable of acting fast with competitive rates below 0.95% pcm who were able to offer our client a 75% LTV.
The lender that we and our client decided on using was also able to offer a stepped rate to capitalise on early sales at a rate of 0.65% for the first six months. The deal was swiftly completed in under four weeks - from start to finish.
