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Development facility on a part-complete scheme in Essex at 4.75% per annum

Deal Structure

50% Loan to GDV

60% Loan to Costs

Interest rate 4.75% per annum (4% over BBR)

1.5% Arrangement Fee

1.5% Exit fee (based on facility amount)

No additional broker fees.

12 months term.

Deal Summary

An experienced developer client had purchased an Ex-pub in Essex which had planning consent for the development of 1 new-build residential unit in the grounds. He then applied to enhance that consent, to allow 2 units. The application was successful, and the client started the works with his own funds.

After works had started, the client approached us to assist with funding the scheme to completion. Often a part-complete site can deter some lenders, but we opened dialogue with one funder in particular who was not concerned by this, given all the necessary documents were in place to show that the works done were satisfactory.

Given the client had put significant funds in the scheme so far, a low leveraged deal was sufficient, which meant a gross loan at 50% Loan to GDV was satisfactory. A lower leveraged deal attracts lower rates, and the client accepted a Development Finance offer at a rate of 4% over bank base rate.

Contact John Waddicker

07974 703375

john@positivecommercialfinance.co.uk

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