Development Finance facility at 70% Loan to GDV for the construction of 6 houses in Leeds

Deal Structure

70% Loan To Gross Development Value

Interest Rate 0.95% per month, with interest retained

2% Arrangement Fee

19 months term.

Deal Summary

An experienced developer based in Yorkshire required funding for a small housing scheme in Leeds. The developer agreed an option on the site and then applied for the planning permission which was finally granted in August this year. With the planning uplift, the site value was higher than the agreed purchase price, and the lender was happy to use the increase in value as the developers equity contribution to the project.

Armed with all the necessary information, Positive Commercial Finance then approached a couple of lenders and procured some attractive terms for the Developer. The Developer then committed to his preferred option which resulted in a fully “credit backed” offer 24 hours later.

The Valuation and QS were instructed straight away and shortly after, given a high degree of confidence from the respective professionals, solicitors were also instructed. Completion occurred within 6 weeks.

Another happy Positive Commercial Finance client.