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Refinance of a Development Loan to allow further time for sales at 0.49% pcm

Deal Structure

63% Loan To value

Interest Rate 0.49% pcm

2% Arrangement Fee

No exit fees

12 months term

Deal Summary

Our experienced developer client had successfully built 11 x detached house in Cheshire. The build went as planned, albeit slightly over budget due to some initial drainage issues. The initial Development Finance loan term didn’t allow much time for sales. The developer was fully aware of this, but was comfortable given there would be options to refinance the site at Practical Completion.

3 sales had exchanged, but not yet completed. There was a good deal of interest from buyers, but clearly given the market sentiment currently, another 12 months might be required to sell the properties at prices the developer was comfortable with.

We arranged a 12 months facility at 63% Loan to Value, which redeemed the Development Loan and also allowed a small amount of equity release.

The loan was completed within 3 weeks of the site being finished, and the first property sale is expected to complete this month.

John Waddicker

Contact

John Waddicker

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Positive Commercial Finance is a trading name of Business Financial Solutions Limited. Registered in England & Wales 06451075. Registered office address Warth Business Centre, Warth Road, Bury BL9 9TB. Authorised and regulated by the Financial Conduct Authority (716012). Full members of the NACBF and FIBA. ICO registration reference Z1196910.