Development Funding for 6 Executive Homes

Deal Structure:

70% Loan to GDV

£2,500,000 Loan amount

15 months term

9% per annum

Part-complete site

Deal Summary:

An experienced property developer approached Positive Commercial Finance with a requirement for a loan to build six executive style houses in the North West of England. The developer had already secured planning permission and had an estimated gross development value (GDV) of £3.6m. They had spoken to numerous lenders and brokers but were unable to secure the funding they needed to complete the site, which they had already started with their own funds.

We took up the challenge to find a suitable lender who could provide the required funding. After carefully assessing the client’s requirements, Positive Commercial Finance approached a specialist development finance lender who was able to offer a suitable development loan. The loan was completed quickly using the funders in-house solicitors and without a RICS valuation report.

The loan amount was £2.5m, secured against the development site. The lender was able to complete the loan within two months, which was well within the developer’s required timeframe. The developer had 4 reservations already making the project an attractive funding opportunity.

Positive Commercial Finance’s expertise in the property finance industry and their ability to find bespoke loan products helped the property developer secure the necessary funding to complete the project successfully. The lender’s quick turnaround time and the loan’s flexible structure allowed the developer to manage their cash flow effectively and push forward the development towards completion and sale.