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Development Loan for 9 Flats at 70% loan to GDV
Property Case Studies
The Client
Our client was looking to fund a development of 9 flats in Leeds. The company have a number of schemes to their portfolio, but this was the first large scale development project. As an ambitious, young company, they wanted to minimise the cash injection required so as to retain liquid funds for other projects. To support this, we sought to maximise the loan to value of the borrowing.
The Case
Some lenders deemed the development was in a less desirable part of the city and therefore, it fell outside of their development loan criteria. Similarly, owing to a lack of like for like experience, some lenders were unable to support the scheme.
The Solution
We were able to source a development loan providing 100% of build cost, and a significant amount of the purchase price. The lender provided a facility at a very competitive 70% loan to gross development value.
The client was able to progress with the project and plans to sell the units on completion. It will make for an impressive addition to the company portfolio and the sales will provide funds for future projects.
Speak to a member of our development team.
