80% LTV Developer Exit bridge at 0.85% pcm

Deal Structure

80% Loan to Value.

£975,000 loan facility.

Interest Rate 0.85% pcm, with interest retained

1.5% Arrangement Fee

No Exit Fees

12 months term

Deal Summary

Having previously arranged a Development Finance facility for this client, she sought our advice and assistance to redeem the Development loan as she needed further time to sell the finished properties.

Whilst the incumbent lender was generally happy with the Developers performance and loan conduct, the funding line couldn’t provide a “Sales Bridge” as they were currently over-exposed in that area.

The scheme of 2 high-spec houses was finished and fully signed off. Unfortunately, the previously arranged sales on both houses had both fallen through so the client was faced with having to re-market the properties with only 1 month left to run on the Development loan.

Our existing relationship with a funder close to the scheme meant we were confident in being able to refinance at a fairly high LTV. The funder was confident in the proposed values and liquidity in the marketplace so was prepared to provide a higher LTV than they would typically extend to.

The loan was completed within a month so the Development lender was paid off in good time and the client now has the comfort of a further 12 months to sell the properties.

Contact John Waddicker

07974 703375

[email protected]