They were looking to purchase their first property development, and begin their transition from builder to property developer. They had an offer accepted on a property, a former bank with planning permission to convert to five flats with a commercial unit on the ground floor.
Although they were experienced builders, the world of finance was new to them and they needed to start from scratch to gain an understanding of the process.
The property was situated in an area with excellent demand and the works were well within the clients’ capabilities. The main issue was that the level of deposit needed was in excess of the amount available to the clients and the lack of experience in tackling their own projects.
The Key Requirements
|Estimated GDV:||£1,276,700 + (£480,000 Additional Security On A Residential Property)|
|Amount of Loan Required:||£867,134|
We approached a development finance institution who were happy to work with the clients, despite this being their first project. They were also willing to take a second charge on the clients’ additional property, meaning there was no need to involve two lenders, making the process simpler.
The application was approved quickly, and we were able to secure a second charge on another property that was owned by the clients as additional security. This allowed us to reduce the required deposit to a level that was affordable to the clients.
The loan completed, and the clients were able to begin their journey as a property developer.