Development Finance facility for 23 houses in Lancashire

Deal Structure

65% Loan to GDV & 80% Loan to Costs

£5,137,000 net facility amount

2% Arrangement Fee

Interest at 10.75% per annum.

No Exit Fees.

21 months term

Deal Summary

A developer approached Positive Commercial Finance for a “second opinion” after receiving some terms which had been sourced directly. After an initial site meeting and consultation, we were confident that we could improve on the terms and importantly bring in a lender who was extremely pro-active and pragmatic, given the developer was keen to get on site. It transpired that the pragmatic nature of the lender was an extremely important factor in getting the deal over the line.

Planning consent had been granted for 23 x 3 and 4 bed houses in Lancashire, with most of the utilities already on site after an adjacent development was finished some time ago. The site was in a fantastic location with sea views.

The developer had already commissioned Valuation & Monitoring Surveyor reports and as these were in an acceptable format for the lender, they were both re-assigned to the incoming lender. The valuer was already on the lenders panel, but the MS wasn’t however the lender has happy to on-board the MS and accept their report.

The developer is now on site and is embarking on a circa 15 months build programme. The lender was also keen to get involved in the marketing of the properties, which the developer was happy to agree to.

Contact  John Waddicker

07974 703375

[email protected]