Our client is an established, experienced property developer by trade with a large property portfolio.
Our client came to us with a requirement to be able to act quickly to secure development sites without the time scales and stipulations required for bridging finance.
Our property team advised the client to put in place a flexible property finance facility, sometimes referred to as a hunting licence or a revolving credit facility.
A hunting license is a flexible line of credit, secured against a property portfolio that provides quick access to funds. It allows the investor to move quickly and has a range of uses which include, purchasing land without planning, auction purchases, to fund a deposit, to fund an extension, refurbishment and improvement, new property purchase, refinance or working capital for a business. The facility is repaid once the longer-term funding solution is in place for example, a development finance facility or commercial mortgage.
We sourced a £1m flexible finance facility for the client. This facility allows the client to drawdown on funds as and when they are needed, usually within 6 days from request. The facility has allowed the client to secure development opportunities quickly.