Developer Exit/ Sales Bridge loan for a 7 house scheme in Cheshire

Deal Structure

£2.19m gross facility.

80% Loan To Value (gross).

2% Arrangement Fee.

Interest at 0.89% pcm.

No Exit Fees (subject to a 3 month minimum term).

No Lender Admin Fees, Application Fees, or additional Broker Fees.

Deal Summary

Our experienced property developer client had recently completed a scheme of 7 houses in a leafy suburb of Cheshire, with a GDV of circa £2.75m. Two sales had already been agreed but both buyers were in a chain, so those sales were not expected to complete quickly. Interest in the rest of the development was good, but no further sales had been agreed. As such, it was evident that a longer sales period was needed than initially anticipated, so a 12 months’ Bridging term was arranged, to afford the developer a longer period to sell without the stress or pressure of running out of time, on the loan term.

Practical Completion documentation was in-hand, and the valuer was satisfied that the marketing prices were achievable, and this was further supported by the agreed sales.

The incoming Developer Exit bridging loan will repay the current Development Finance facility, and will give a 12-month period for sales to complete, to redeem the Bridging facility. Should the developer require some of the net sales proceeds from the remaining properties after the 2 sales, a structure was agreed where this would be facilitated.

Contact John Waddicker

07974 703375

[email protected]