100% funded Development Loan for 4 houses in Cheadle

Deal Structure

65% Loan To GDV.

£1.6m Loan.

100% of Total Project Costs funded.

Developer Equity provided by a cross guarantee.

Deal Summary

An existing client of ours required a new Development Facility for a scheme of x4 detached houses in Cheadle which they had recently been offered, and was “too good to miss”. As is very often the case, the timing of the new opportunity was not perfect given the developers current scheme was not far enough advanced to facilitate a seamless transition from one scheme to the next. The current scheme was part-way through development and therefore the sales income wasn’t anticipated to come in soon enough.

Having arranged the Development Finance on the current scheme, Positive Commercial Finance opened discussions with that funder to establish if they not only had an appetite to fund another scheme with the same borrower, but if they would utilise the equity in the current scheme, to fund the “new” one. The lender cross-guaranteed both sites and provided 100% of the purchase price, with 100% of build costs and professional fees to be drawn in tranches, in arrears.

The new scheme is now secured and the client is managing both schemes in tandem. Naturally he is delighted not to miss out on a fantastic opportunity and can now guarantee to keep his work-force busy for the next 18 months.

Contact  James Waddicker

07977 460546

[email protected]