Part-Complete Development Finance for a Landmark Luxury Home

Refinancing a part-complete development can be challenging, particularly when the original lender leaves the market or the project involves a unique, high-value property.

In this case study, Positive Commercial Finance arranged Part-Complete Development Finance that enabled our client to refinance an existing development loan and secure the funding needed to complete an exceptional luxury home.

The Background

Several years earlier, our client had obtained planning permission to build a striking “trophy” home on the South Coast.

Construction began successfully. However, shortly afterwards, the original development finance lender started withdrawing from the market.

This created a lengthy and complicated refinancing process, leaving the development partially complete and delaying progress for several years.

The Challenge

The project presented several significant hurdles.

First, the original lender entered a recovery process, meaning negotiations took considerably longer than expected.

Secondly, the property was unlike anything else in the local market. As a result, there were no meaningful comparable sales, making valuation far more complex than a typical residential development.

Finally, the new lender needed to:

• Repay the existing development finance.
• Satisfy the Receiver’s requirements.
• Provide sufficient funding to complete construction.
• Take a commercial view on a unique, high-value property.

Our Solution

Positive Commercial Finance approached a specialist development finance lender with extensive experience funding complex and bespoke projects.

After carefully reviewing the development, the lender recognised the long-term potential of the scheme and structured a refinance facility that met the Receiver’s requirements while also providing the capital needed to complete the build.

Throughout the transaction, we worked closely with all parties to help move a long-running and complex case towards completion.

Deal Structure

• Loan to Value (LTV): 65%
• Loan Amount: £4,400,000
• Interest Rate: 0.9% per month
• Arrangement Fee: 2%
• Exit Fee: 1%
• Term: 12 months

The Result

The refinance successfully redeemed the previous development loan and unlocked the funding required to restart construction.

With finance now in place, the client can complete what is expected to become one of the South Coast’s most distinctive luxury homes.

This case demonstrates how specialist Part-Complete Development Finance can unlock complex projects that fall outside the criteria of mainstream lenders, particularly where high values, unique properties and challenging circumstances demand a pragmatic lending approach.