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Case Study: £3,100,000 Development Finance Secured for 8 New-Build Houses in the North East of England (£5m GDV)
Client Background
Our client was an experienced regional housebuilder based in the North East of England with a proven track record delivering high-quality residential schemes. They had secured a brownfield site with detailed planning consent for eight three- and four-bedroom detached and semi-detached family homes. The project represented a well-planned step-up in scale for the business, with a strong Gross Development Value (GDV) of £5 million underpinned by robust local demand and comparable sales evidence.
Challenge
As with many developers across the UK, the client first approached high-street lenders and a number of traditional brokers. They faced either outright declines or terms that were simply unworkable — low loan-to-cost ratios, heavy personal guarantees, protracted underwriting timelines, and requirements for significant additional equity that would have delayed or derailed the scheme. With construction costs rising and contractor mobilisation windows tightening, the client needed a fast, flexible, and commercially realistic funding solution to keep the project on track.
Solution
Following a recommendation from their solicitor, the client contacted Positive Commercial Finance. Within 48 hours our team had reviewed the full package — planning consent, architect’s drawings, quantity surveyor costings, and site appraisal — and secured an instant Decision in Principle (DIP) from a specialist development lender on our panel. We structured a £3,100,000 senior development facility on highly competitive terms:
- Loan amount: £3,100,000 (covering remaining land acquisition costs plus 100% of build costs to practical completion)
- Loan-to-GDV: 62% (conservative and lender-friendly)
- Interest rate: 8.75% per annum (rolled up)
- Arrangement fee: 2% (payable on drawdown)
- Term: 18 months (with option to extend)
- Exit fee: Nil
- Personal guarantees: None required
- Security: First legal charge over the site and the eight houses as they are constructed
Importantly, we retained the client’s existing quantity surveyor (avoiding the cost of a lender-appointed monitoring surveyor) and negotiated a flexible drawdown schedule aligned precisely to the certified build programme. This kept cash flow healthy and minimised interest costs. From initial enquiry to first drawdown, the entire process took just 19 working days.
Results
Construction is now well advanced. Groundworks and foundations are complete, the project remains firmly on budget and on programme for completion in late 2027. Early marketing has already generated strong interest, with several plots reserved off-plan. The client has confirmed that the facility has not only unlocked this scheme but also provided the confidence and established banking relationship needed to tender for larger opportunities across the North East.
“Positive Commercial Finance cut through the bureaucracy that tied us up with other brokers and lenders. They found a commercial, sensible funder who truly understood residential development in the North East and delivered exactly what we needed — fast, clean, and with no hidden surprises. We wouldn’t hesitate to use them again.”
— Director, North East Housebuilder
— Director, North East Housebuilder
At Positive Commercial Finance, the UK’s leading bridging and development finance specialist, we specialise in delivering fast, flexible, and reliable funding solutions for property developers nationwide. We have now funded over £1 billion for clients across the UK and maintain access to more than 200 specialist lenders and 500+ products. Our no-upfront-fee, no-broker-fee model and award-winning service ensure you receive the right deal without the hassle.If you have a residential or mixed-use development project — large or small — and want to discuss funding options, contact us today for an instant DIP and see how we can help you move forward.
Call: 0161 763 0321
Email: [email protected]
www.positivecommercialfinance.co.uk
Email: [email protected]
www.positivecommercialfinance.co.uk
Positive Commercial Finance is a trading name of Business Financial Solutions Limited. Authorised and regulated by the Financial Conduct Authority.
Contact
James Waddicker On 07977460546 or message here
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