An Irish entrepreneur with a UK property portfolio had been sitting on a site in Leeds for over ten years. With the UK property market moving more positively he felt this was time to finalise planning and develop out the site for profit. The development was to demolish a small commercial building and build 4x new 4 bed town houses.
The applicant put the unencumbered land into the deal and we requested a loan of £350K (100% finance for the build), 40% LTV against the anticipated aggregate valuation figure of £860K. As the applicant wasn’t a typical ‘property developer’ we obtained funding from a specialist residential property development funder at an interest rate of 1.16% per month.
The term of the facility was 12 months with full interest roll up over the term which considerably assisted cash flow. The client was delighted to secure this facility as most other lenders turned him down.