Finance Development Loan Case Study – Lady Bay Nottingham
By: James Newland
This finance development loan was for a property investor who has purchased a development site for £200,000 with planning consent for 4 two bed flats.
|Loan||£235,000 peak borrowing|
|Loan to Value||54%|
|Interest rate||1.75% pcm|
We provided 95% of the cost for the development and got a first charge over the freehold of the land and works. Interest was rolled up against drawn funds only calculated on a daily basis. Payments were issued against an independent monitoring surveyor’s certificate, the cost of which came from the facility. The borrower sold 2 flats to repay the facility and retained 2 for their portfolio.