55% Loan to GDV
69% of Total Project Costs
Interest rate – 6.5% per annum
Arrangement Fee – 1.5%
No Exit fees
18 months term
Our experienced developer client had acquired an option on a site in the South East, subject to planning. After some time, planning consent was granted for the development of 12 houses in a gated community environment. The developer had a series of successful schemes behind him, and was able to purchase the site outright, as well as contributing funds towards the start of the works.
We were instructed to source a development finance facility at no more than 55% of the Gross Development Value, and this was to include a provision for the lenders’ fees and interest.
The developer was keen to keep the Personal Guarantee requirement limited, given his very significant cash contribution and so we opened discussions with funders who we knew could accommodate.
The developer was pleased with the options available and decided to work with a lender who offered an interest rate of 6.5% fixed, on the drawn sum. Personal Guarantees were strictly limited to interest and cost over-runs only. In addition, there were no exit fees or non-utilisation fees.