32% Loan to GDV
£400,000 loan size
Interest Rate 0.99% per month
2% Arrangement Fee
1.5% Exit Fee
12 months term
Our client owned an existing bungalow in Kent which he then sought planning consent for, to develop into a significantly larger property with a proposed GDV of £1.2m. He was in a position to fund the purchase with cash, and he also started the works using a reputable main contractor. He expected to be able to fund the build entirely form his own resources, but ultimately needed to raise the finance to complete the works.
The Loan to GDV was comfortable enough to attract most lenders, but this was considered to be a “trophy” home which restricted appetite. In addition, and indeed more importantly, the residential status of the borrower was somewhat complicated. He worked overseas for considerable periods of time, and typically was out of country for lengthy spells, and often at short-notice.
We were asked to seek a lender who was understanding of the applicants status, and was comfortable with a part-complete development of such an asset. The property was some way off being wind & water-tight, so a Development Finance facility was required.
The chosen funder was quick to respond and got comfortable with the applicants’ status quickly. The client can now complete the build and prepare the property for sale.