75% Loan to Value, based on Open Market Value
Interest Rate 0.69% per month
1.5% Arrangement Fee
No Exit Fees
Our client is a well experienced Developer who had recently completed 12 x houses in the North West. There had been a good level of interest from prospective buyers, but none were showing any commitment until the development was finished. As such, and despite the level of interest, only a handful of reservation fees had been taken.
Having met with the borrower on site, the incoming lender understood why buyers might only commit once the site was completely finished. The Developer then reached Practical Completion, and a number of reservation fees were taken. At that point however, the Development Facility was reaching maturity.
We arranged a Bridging Loan to redeem the Development Loan at 75% Loan to Value gross. The developer now has 12 months to sell the houses at a price he is happy to sell for. With the pressure off, buyers are now committing, and the Developer hopes to have the facility redeemed within 6 months.