Our client had developed seven commercial holiday lets in St Ives, Cornwall. Four of the units had been sold, with three remaining.
The development finance facility in place for the build was approaching its end of term and the lender would not grant an extension to allow for the sale of the remaining three units.
This case was extremely time critical as the client would incur fees if an exit to the development finance wasn’t sourced quickly.
We were able to place a 75% gross loan development exit facility of £837,000 against a £1.2m valuation, allowing the client to repay his initial development finance facility and his investor. The client was also left with sufficient funds to purchase his next project.