100% loan to cost
Interest rate at 1.66% per month
1% Arrangement Fee
No exit fees
12 month term
50/50 split of profits
Our client is an experienced contractor and project manager who recently undertook their first development scheme, this being the build of two small houses, which had recently been recently completed. Traditional senior debt funding was used for that project.
The client had the opportunity to purchase another, larger site, both in terms of the sizes and values of the units.
A Developer Exit loan solution to release some equity from the existing site did not release enough money to produce a sufficient deposit for a Senior Debt loan solution on the new site – and also the client wanted to retain the bulk of the profits from the existing site for cashflow and other purposes.
The main hurdles to jump in relation to finding a finance deal for the client were:
We introduced the client to a JV partner where the decision-maker went out to see them and look at the new site. The decision-maker was comfortable with client’s approach and both parties shook hands on a deal on the day. The Joint Venture funder provided true 100p in the £ funding and the client did not have to provide a PG.