Development Finance loan at 90% Loan to Costs for 9 houses in Kent.

Deal Structure

90% Loan to Total Project Costs.

65% Loan To GDV.

£3.9m Loan.

2% Arrangement Fee.

Interest at 10.95% per annum (5.7% over Base)

1.25% Exit Fee.

24 months term.

Deal Summary

We were approached by an experienced Developer whose existing funding relationship had deteriorated recently due to a “lack of empathy” from that lender after a sub-contractor went bust, leaving the Developer to face the consequences of the unforeseen event without any support from the lender. The Developer felt compelled to take a look further beyond his existing relationships, and therefore contacted us to assist with funding for his next scheme of 9 family homes in a gated community in Kent.

We were tasked to “match” the funding parameters of his previous funder (namely 90% Loan to Cost) but the Developer now wanted to establish a relationship with a Challenger Bank as opposed to a specialist lender, predominantly because he felt that a Bank would be less inclined to apply default fees & rates as swiftly as his previous specialist lender had done.

Our chosen funding partner was able to fund up to 90% of Total Project Costs, at better pricing than the client had previously experienced, with a lower PG amount and with sufficient flexibility to make the Developers decision quite an easy one. Further, the Bank lender will be able to refinance some of the units on to a longer-term facility, should the Developer decide to retain any for longer-term investment.

The new facility is now in place and the client is on site.

Contact  John Waddicker

07974 703375

[email protected]