Refinance of a part-completed development
Property Case Studies
Our clients are seasoned developers with an extensive portfolio of large-scale developments. The client specialises in large scale commercial to residential conversions. This project saw the development of 28 units, including the conversion of an old inn to a multi-unit block.
Our clients were part way through the development when their high street bank started to move slowly, causing delays. We needed to find source a solution, so the developers could repay the high street provider and move forward at pace. Sourcing a lender part way through a project is difficult and required careful presentation.
We sourced a specialist development finance provider that increased the loan size allowing equity release and immediate funds to complete the project. On completion of the project, 16 of the units were sold, the development loan was repaid, and 12 units were retained by the developers.
The client sought to mortgage the remaining 12 units to retain as buy to let investments. The challenge here was that the units were spread between four separate blocks on the site. This meant the loan requirement fell outside of policy for many lenders. We also had the additional challenge of securing the valuation and funding during the COVID-19 pandemic, when many lenders had paused operations and reduced their product offering.
Despite the challenges, we were able to structure the deal to secure the required multi-million-pound mortgage. The client was able to take equity out of this scheme for their next project. All 12 units have been let, leaving the client with a profitable addition to their portfolio.