£4.9m Development Finance facility at 70% LTGDV in Oxfordshire

Deal Structure

£4.9m facility (gross, including interest & Arrangement Fee)

70% LTGDV & 90% Loan to Cost

75% LTV net on Day 1

2% Arrangement Fee

Interest Rate 8.49% per annum

1.25% Exit Fee (based on the facility amount)

24 months term

Deal Summary

An experienced developer client had agreed to buy a site in Oxfordshire which came with detailed planning permission for 21 residential units in a predominantly residential area with great transport links.

The client had recently finished a development of 14 houses not too far away, and this was an excellent opportunity to move on to. The vendor required a swift completion and so we targeted a small number of lenders whom we knew could act quickly.

Whilst the client had a significant amount of cash to contribute to the project, he wanted to consider a number of different leverage options. After presenting the client with options ranging from 55% to 70% Loan to GDV, he decided to accept an offer which provided 70% LTGDV which gave a Day 1 “net” figure equivalent to 75% of the land purchase price. As such, he could keep plenty of cash in reserve to be utilised elsewhere if necessary.

Contact John Waddicker

07974 703375

[email protected]