70% loan to value
Interest rate – 0.7% per month
Arrangement fee – 2%
No exit fee
12 month term
Our client was an experienced developer whose development funding facility was about to expire, and their funder required repayment by the expiry date due to their own financial issues.
Although the property would be ‘almost’ finished by that date, it was probable that it wouldn’t quite be finished (i.e. completion certificates would not be in place).
A funder was sought who could take a view on this, keeping back a small retention until those certificates were delivered.
The loan also hit a couple more issues in that a couple of County Court Judgements (CCJ’s) appeared against an address the client had stayed at temporarily in the past (which the client wasn’t aware of and didn’t believe to be theirs) and an ambiguous covenant was discovered on the title to the property which I believe would have precluded most lenders from providing a facility.
The lender we selected got right into the detail on both points and came up with a developer exit solution to allow the loan to draw smoothly and on time.