82% Loan to Cost
65% of GDV
Facility amount £795k
2% arrangement fee
Interest at 1.1% per month, rolled up
0.5% Exit fee
An experienced project manager who worked for a well-established construction company in Scotland had purchased some land near Glasgow. He purchased the plot outright then successfully applied for planning consent for 9 houses, to be built of timber frame construction.
This would be the first development of his own, and he wanted to use his skills and project manage the scheme himself, instead of using a main contractor on a fixed price basis. He teamed up with a colleague and was able to satisfy the lender that they were capable of delivering the scheme, on a self-build basis.
The development finance lender did NOT require a 3rd party RICS valuation report and instead satisfied themselves with the current value and the proposed GDV. The lenders own appointed QS was happy with the costings and solicitors were instructed simultaneously for a timely completion.