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 |
| Valuation | £500,000 |
| Loan to Value | 54% |
| Interest rate | 1.75% pcm |
| Total Return | £31,529.56 |
| Term | 10 months |
| IRR | 24% |
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.
BRIDGING LOANS
Bridging loans provide the borrower with short term finance secured against property assets.
DEVELOPMENT FINANCE
Available to developers and investors with a track record in residential development and / or refurbishment
JOINT VENTURES
We will consider putting up to 95% of costs for residential development of refurbishment and joint ventures.
