63% Loan To value
Interest Rate 0.49% pcm
2% Arrangement Fee
No exit fees
12 months term
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.