Refinance of a Part Complete 12 unit residential development scheme.

Deal Structure

£2.7m gross facility

69% Loan To Value (net) on Day 1, the 100% of the Costs to Complete.

67.5% Loan to GDV

2% Arrangement Fee

Interest at 0.9% pcm

1% Exit Fee

12 months term.

Deal Summary

Our developer client had experienced some significant delays on his current scheme of 12 new-build houses in Lancashire with a proposed GDV of circa £4m. The current Development Finance lender had been supportive and patient, but their funding line could not extend the facility further, and as such we needed to find an alternative funder.

It was evident that the delays were not of the developers own making, and as such we were able to submit a compelling presentation to the chosen lender. The scheme was well progressed with the majority of the units at a very advanced stage, with some sales secured meaning all parties were confident that revenue would start to come in reasonably quickly.

Despite a down-valuation of the GDV by the surveyor, the lender took the agreed sales figures into consideration to effectively increase the RedBook GDV, which helped keep the residual value within the required parameters.

The incoming lender was able to rely on & utilise the previous lenders QS which facilitated a smoother transition to the new lender.

Despite the change of lender, the developer managed to keep works progressing and is now hopeful of the first buyers moving in shortly.

Contact John Waddicker

07974 703375

[email protected]