53% Loan to Value
Interest at 0.65% per month
2% Arrangement Fee
No Exit fees
12 months term
An experienced developer client had purchased a house in Manchester which had planning permission for an extension, converting the current tired 3 bed semi-detached property into a modern 5 bed dwelling.
The client wanted to borrow the monies to cover the cost of works, but he preferred to borrow the money in one lump sum, to avoid the need for any on-going monitoring and draw-down requests.
Most Bridging lenders wouldn’t/ couldn’t accommodate this (one lump sum) due to the extent of works to be carried out, and most Development Finance lenders insist on funds being drawn in arrears of works being carried out. We managed to find a lender who was more than comfortable with the request, given the low loan to value and the experience of the borrowers.
The client was happy with the rate of 0.65% per month, with interest retained for the term.