65% Loan to value Day 1
70% Loan to GDV
Interest Rate 0.75% per month, rolled up
2% Arrangement Fee
12 months term
Our client needed to refinance a development loan which was rapidly approaching end of term, given the build programme had run over-time (and cost) due to some unforeseen ground conditions meaning a significant amount of additional works were required under the surface.
The single residential property had a Gross Development Value of £5m, and was wind and water-tight, but still required a significant spend to get to Practical Completion stage.
The current lender decided that they were not willing to advance any further funds to complete the works, so evidently we needed to find a new lender who could accommodate the requirement.
Options were not going to be vast, given the finished article was a high-value single residence, but from our vast funding panel we managed to present the developer with a choice of two options which provided what he needed.
The developer opted for the lender who was happy to retain the current lenders QS, and was also happy with an updated report from the valuer who provided the initial report to the current lender. This meant we weren’t going to be exposed to a different set of values and figures which a newly instructed valuer & QS team might well have considered.
After a thorough audit of the existing reports, the incoming lender managed to conclude the whole process within 4 weeks, thus avoiding any further significant delay to the project.
The developer expects to finish the works within 2 months, thus giving a further 10 months to conclude a sale.