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Case Study: £4,000,000 Development Finance Secured for 12 New-Build Houses in Greater Manchester
At Positive Commercial Finance, the UK’s leading bridging and development finance specialist, we specialise in delivering fast, flexible, and reliable funding solutions for property developers across the country. Here’s how we helped a North West developer raise £4,000,000 to build 12 high-specification family homes in Greater Manchester.
The Client
Our client was an experienced regional housebuilder with a strong track record of successful smaller-scale residential schemes. They had acquired a brownfield site in Greater Manchester, secured detailed planning permission for 12 three- and four-bedroom detached and semi-detached houses, and already received strong interest from local buyers. The project represented a natural step up in scale for them, with an anticipated Gross Development Value (GDV) comfortably above £6.5 million.
The Challenge
Like many developers in the current market, the client initially approached high-street lenders and a couple of high-street-aligned brokers. They received either outright rejections or unworkable terms — high personal guarantees, low loan-to-cost ratios, lengthy underwriting processes, and demands for additional equity that would have stalled the project. Time was critical; the client needed funding released quickly to mobilise contractors and maintain momentum before construction costs rose further.
Our Solution
The client came to Positive Commercial Finance after a recommendation from a local solicitor. Within 48 hours we had reviewed the full package (planning consent, architect’s drawings, QS costings, and site appraisal) and issued an instant Decision in Principle (DIP) from a specialist development lender on our panel.We structured a £4,000,000 stretched senior development facility on the following competitive terms:
- Loan amount: £4,000,000 (covering land acquisition balance + 100% of build costs to completion)
- Loan-to-GDV: 62% (conservative and attractive to the lender)
- Interest rate: 8.75% per annum (rolled up)
- Arrangement fee: 2% (paid on drawdown)
- Term: 18 months (with option to extend)
- Exit fee: Nil
- Personal guarantees: None required
- Security: First legal charge over the development site and the 12 houses as they are built
Crucially, we retained the client’s existing quantity surveyor and avoided the lender appointing their own monitoring surveyor at extra cost. We also negotiated a flexible drawdown schedule aligned to the build programme, so funds were released in line with certified milestones — keeping the client’s cash flow healthy.The entire process from initial enquiry to first drawdown took just 19 working days — significantly faster than the client had experienced with previous lenders.
The Result
Construction is now well underway. The first phase of groundworks and foundations is complete, and the project remains on budget and on programme for completion in Q4 2026. Several plots have already exchanged with buyers, and the client has told us this facility has not only unlocked the current scheme but given them the confidence and banking relationship to tender for larger opportunities in the North West.Client feedback
“Positive Commercial Finance cut through the red tape that other brokers and lenders tied us up in. They found a sensible, commercial lender who actually understood residential development in Greater Manchester and delivered exactly what we needed — fast, clean, and with no nasty surprises. We’ll be using them again without hesitation.” — Director, North West HousebuilderAt Positive Commercial Finance we have now funded over £1 billion for developers nationwide and maintain access to more than 200 specialist lenders and 500+ products. Whether you need development finance, bridging, joint-venture funding, or refinance, our no-upfront-fee, no-broker-fee model and award-winning service mean you get the right deal without the hassle.If you have a residential or mixed-use development project — large or small — and want to discuss funding options, contact us today for an instant DIP and see how we can help you move forward.Positive Commercial Finance
Fourth Floor, Unit 5B, The Parklands, Lostock, Bolton, BL6 4SD
Call: 01617630321
Email: [email protected]
www.positivecommercialfinance.co.uk
“Positive Commercial Finance cut through the red tape that other brokers and lenders tied us up in. They found a sensible, commercial lender who actually understood residential development in Greater Manchester and delivered exactly what we needed — fast, clean, and with no nasty surprises. We’ll be using them again without hesitation.” — Director, North West HousebuilderAt Positive Commercial Finance we have now funded over £1 billion for developers nationwide and maintain access to more than 200 specialist lenders and 500+ products. Whether you need development finance, bridging, joint-venture funding, or refinance, our no-upfront-fee, no-broker-fee model and award-winning service mean you get the right deal without the hassle.If you have a residential or mixed-use development project — large or small — and want to discuss funding options, contact us today for an instant DIP and see how we can help you move forward.Positive Commercial Finance
Fourth Floor, Unit 5B, The Parklands, Lostock, Bolton, BL6 4SD
Call: 01617630321
Email: [email protected]
www.positivecommercialfinance.co.uk
Contact
James Waddicker On 07977460546 or message here
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