100% loan to cost
Structured Package using 2 lenders, one for the senior debt and one for the junior debt
Total facility size £500K
Projected profit for developer £100K
Our client is a very experienced developer had been ‘out of the market’ since having a heavy exposure to the banks in the 2008 recession, which resulted in their personal bankruptcy.
Since then, our client had concentrated on contracting work and although they had re-built their net worth, didn’t have a ‘stake’ to put into a deal to refurbish a house and build two bungalows in the rear garden at a site very close to where they live in the Midlands.
We approached two lenders we know well who went out to meet the client and look at the site.
The lenders were comfortable with the client’s capabilities and site. Between them, they came up with a 100% finance package, which the client was delighted with as it allowed them to get back on to the development ladder, without putting a stake into the deal.