Fast Development Finance for First-Time Developer Completed in Just Four Weeks

Positive Commercial Finance specialises in arranging Fast Development Finance for developers who need funding without unnecessary delays. In this case study, we helped a first-time developer secure finance for a new-build home and the refurbishment of an existing property, with completion achieved in just four weeks.

The Project

Our client had recently purchased a semi-detached property with planning permission to build a new house within the garden.

The project involved two elements:

• Refurbishing and extending the existing house.
• Constructing a brand-new residential property.

Although this was the client’s first development project, they brought valuable experience from working for a national housebuilder.

They also assembled a strong team of architects, surveyors and other professionals before approaching us, helping the project progress efficiently from the outset.

The Funding Challenge

The client wanted to maximise the value already tied up in the existing property while keeping additional cash investment to a minimum.

They required a funding solution that would:

• Release equity from the unencumbered property.
• Fund the refurbishment works.
• Cover 100% of the remaining build costs for the new house.
• Complete quickly so construction could continue without delay.

Our Solution

Positive Commercial Finance sourced a specialist development finance lender that recognised both the strength of the project and the experience of the professional team supporting it.

The facility released equity from the existing property while also providing full funding for the construction costs of the new-build home.

Most importantly, the lender moved quickly.

From the point the valuation was instructed, the entire transaction completed within just four weeks, allowing the developer to continue the project without interruption.

Deal Structure

• Loan to Gross Development Value (LTGDV): 40%
• Build Costs Funded: 100%
• Interest Rate: 1.5% per month
• Arrangement Fee: 1.5%
• Exit Fee: None
• Term: 12 months

Completion Timeline

• 22 July: Valuation instructed
• 26 July: Valuation inspection completed
• 31 July: Formal offer issued
• 1 August: Solicitors and Quantity Surveyor instructed
• 15 August: Loan completed

The Result

The client secured the finance needed to complete both elements of the development while releasing equity from the existing property.

The fast turnaround allowed construction to continue without costly delays and gave the developer the confidence to move forward with their first independent project.

This case study demonstrates how Fast Development Finance can help well-prepared developers keep projects on schedule, even when working to demanding timescales.