80% loan to cost / 60% loan to value
Interest rate – 7% per annum
Arrangement fee – 2%
Exit fee – 1%
Term – 18 months
Our client is an experienced developer who had successfully completed a number of schemes over the last 30+ years.
They had secured a site under option and had obtained planning for 3 x 3000 sq ft+ detached houses.
They wanted to find a lender with an established track record of supporting developers through recessions (interestingly this was more important to them than the loan pricing) and a suitable lender was found that the client felt comfortable with. The client’s stance was driven by them being exposed to a High Street bank in the last recession, who they felt didn’t support them. Although this didn’t lead to the demise of the client, life was made very difficult for them at the time.
The Joint Venture lender was impressed with both the client’s track record and with them at the site meeting and had no hesitation in offering terms for the scheme. A deal was quickly concluded.
Our job therefore is not always about obtaining the best price – it can be to advise on and source the ‘right’ lender that the client feels comfortable with.