We Secure Our Client a Better Property Development Finance Package than a Bank Offered
In the world of property development, being able to make quick decisions is crucial when it comes to taking advantage of a great opportunity. It also means being able to secure the right amount of development finance to be able to do the deal. This case study looks at how we raised £1.45m of finance for our client, when his bank only offered £1.1million.
The Details of This Property Development Finance Deal
An accountant had introduced an experienced property developer to us who was looking for an additional source of development finance in addition to his existing bank credit facility during an exceptionally busy period of development opportunities. With property prices steadily increasing he did not want to miss out on some of the opportunities that were being offered.
In this particular instance an attractive development opportunity hadbeen offered to him to purchase and develop an existing building into student accommodation with a retail unit on the ground floorHis existing bank had offered total funding of £1.1m, with the interest to be serviced,
The problem was that this offer of £1.1m was insufficient for the project. We secured a total facility of £1.45m on a GDV of £2.4m, after the development was complete. This sum was sufficient to cover interest roll-up, the development costs and the professional fees too. The interest rate was slightly higher than the prevailing bank rate, however it allowed the client to go ahead with the opportunity and complete the development. He made a good profit, too. (Please note interest rates vary upon the strength of the application).
The client has since used our services to source development funding for further developments.
Contact us if You are Looking for Property Development Finance
We have access to the UK's leading lenders, above and beyond the traditional high street banks and we can source loans that are tailored to your needs.
If your business is in need of property development finance, contact us or call us on 01675 433878 for an initial chat.