Development Finance facility for 34 apartments in Middlesex

Deal Structure

65% Loan to GDV & 81% Loan to Costs

£7.8m gross facility amount

2% Arrangement Fee

Interest at 6.07% over Bank of England Base.

1% Exit Fee.

24 months term

Deal Summary

A Developer client approached us to help with a Development Finance facility for his next project in Middlesex. He had agreed to purchase an existing 3 storey purpose-built office building which was built in the 80’s, which now had planning consent for 34 apartments.

This project would include part conversion & part new-build, given an additional 2 floors will be built in the air-space above the existing property. The client had assembled a solid professional team to work alongside the chosen Main Contractor, to help mitigate “experience” concerns which some lenders can have with air-space developments

We identified the most suitable funding option for the client and moved to application stage relatively quickly. The appointed valuer was in agreement with the proposed GDV figure for the 1, 2 & 3 bed apartments and costings were verified by the MS.

The lender was accommodating enough & was happy to allow some items to be satisfied as Conditions Subsequent, to facilitate a swift completion. We look forward to seeing the site progress.

Contact  John Waddicker

07974 703375

[email protected]