71% Loan to GDV and 90% Loan to Costs
Interest Rate 7.25% per annum, retained
2% Arrangement Fee
1.5% exit fee, based on the facility amount
An experienced developer client required a higher Loan to Cost than he would typically need, due to a large amount of his resources being tied up in another project. He had been working on bringing this next scheme forward for 13 houses in the Midlands, for some time, and the vendor suddenly requested that the land was purchased sooner than originally anticipated, following planning being granted.
Initially the developer thought he might need some mezzanine finance given the Loan to Cost and Loan to GDV required, but we sourced a “stretched” senior debt lender who was comfortable with the level of exposure given the developers very solid track record.
It was clear for the lender to see the developers’ quality of product from previous schemes within the locality and so a Decision In Principle was issued within 24 hours of first presentation. The whole process was then concluded within 6 weeks following a satisfactory site visit.