+
CLOSE
+
CLOSE
Register

By submitting this form you confirm that are happy to submit your data, which will be used solely for the purposes of my above enquiry

+
CLOSE
Quick Enquiry

By submitting this form you confirm that are happy to submit your data, which will be used solely for the purposes of my above enquiry

Development Facility with no exit fees and limited PG’s.

Deal Structure

55% Loan to GDV

69% of Total Project Costs

Interest rate – 6.5% per annum

Arrangement Fee – 1.5%

No Exit fees

18 months term

Deal Summary

Our experienced developer client had acquired an option on a site in the South East, subject to planning. After some time, planning consent was granted for the development of 12 houses in a gated community environment. The developer had a series of successful schemes behind him, and was able to purchase the site outright, as well as contributing funds towards the start of the works.

We were instructed to source a development finance facility at no more than 55% of the Gross Development Value, and this was to include a provision for the lenders’ fees and interest.

The developer was keen to keep the Personal Guarantee requirement limited, given his very significant cash contribution and so we opened discussions with funders who we knew could accommodate.

The developer was pleased with the options available and decided to work with a lender who offered an interest rate of 6.5% fixed, on the drawn sum. Personal Guarantees were strictly limited to interest and cost over-runs only. In addition, there were no exit fees or non-utilisation fees.

John Waddicker

Contact

John Waddicker

Quick Enquiry

By submitting this form you confirm that you are happy to submit your data, which will be used solely for the purposes of your enquiry. You can view our Privacy Policy here.

Positive Commercial Finance is a trading name of Business Financial Solutions Limited. Registered in England & Wales 06451075. Registered office address 1 Harvey Street, Bury BL8 1NL. Authorised and regulated by the Financial Conduct Authority (716012). Full members of the NACFB and FIBA. ICO registration reference Z1196910.

We are a credit broker, not a lender. We work with a panel of lenders who may pay us a commission. This amount varies between lenders.

/* */