Development Finance for Non-UK Resident on Part-Complete Property Development

In this case study, Positive Commercial Finance helped a non-UK resident developer refinance an existing development facility, providing the funding required to complete the construction of a luxury residential property in Kent.

The Opportunity

Our client owned an existing bungalow in Kent and successfully obtained planning permission to replace it with a significantly larger residential property.

The proposed development was expected to achieve a Gross Development Value (GDV) of approximately £1.2 million.

The client initially funded both the acquisition and early stages of construction using personal funds. A reputable main contractor was appointed, and the intention was to complete the entire project without external finance.

However, as the build progressed, the client decided that raising additional finance would be the most effective way to complete the development.

The Challenge

Although the loan requirement represented a relatively low percentage of the completed value, there were several factors that limited lender appetite.

The main challenges included:

• The property was considered a high-value “trophy” home, reducing the number of suitable lenders.
• The development was already part-complete and required specialist development finance.
• The borrower’s residential status was complex due to extensive overseas work commitments.
• The client frequently travelled abroad for extended periods, sometimes at short notice.

We therefore needed to identify a lender who understood both the applicant’s circumstances and the risks associated with a high-value, part-complete development.

Our Solution

We approached lenders experienced in complex development finance for non-UK residents and identified a funder comfortable with the structure.

The chosen lender was able to assess the wider circumstances of the borrower and recognise the strength of the project, rather than focusing solely on the unusual aspects of the application.

A suitable development finance facility was arranged, allowing the client to continue construction and bring the property towards completion.

Deal Structure

• Loan Amount: £400,000
• Loan to GDV: 32%
• Interest Rate: 0.99% per month
• Arrangement Fee: 2%
• Exit Fee: 1.5%
• Term: 12 months

The Result

The refinancing facility provided the client with the funds required to complete the development and prepare the property for sale.

Despite the complexity of the borrower’s residency status and the specialist nature of the property, Positive Commercial Finance secured a flexible solution from a lender willing to take a commercial view of the opportunity.

The client can now complete the build and move forward with the planned sale of the finished property.