Recent Property Development Case Studies
We provide developers and investors with the finance they need to complete their property ventures. Whether you need financial support quickly or you have been turned down by your bank, we will provide the solution for you. Read the case studies below to find out more about how we can help.
Securing finance for a detached property build
Returning developers in Peterborough used our finance several times after being turned down by banks for multiple projects. For one venture, they sought to purchase a plot of land on which they would build a detached property. Having established a strong relationship with the developers and their broker, we were more than happy to finance this project for them.
We lent them £229,500 gross, which was released in three stages, and offered a loan-to-value ratio of 65%. We remained in close contact with them throughout the build, and assisted them in any way we could – which included lending them more money to finalise the build. Read more…
Rescuing a 12-house project
A developer in Greater Manchester had secured a loan with a different lender. However, the lender’s circumstances changed suddenly, which meant they were unable to offer the developer the money they needed to see the project through – despite the build being half-finished at this stage. This is where we we came in.
After the developer explained their difficult situation to us, we were pleased to offer a new loan to complete the project. We were even able to lend additional funding during the first release stage, to ensure that the project got back on track. Read more…
Providing finance for redevelopment ventures
A customer in the North West approached us and asked if we could finance his property auction purchases, which he wanted to renovate and put on the rental market quickly.
We funded 70% to 100% of each purchase, so he went to auction knowing that he would secure the properties he needed. Our specialist solicitor and surveyor were also able to work with the customer straight away, so that he could secure the properties quickly. Read more…
Other Case Studies
We were behind this property developer 100%
One guy came to us when he inherited a large building plot in Yorkshire. It had detailed planning permission for a large 6 bedroom detached house. The total building costs were going to be £300,000 and the customer needed 100% funding. After reviewing the valuation we were able to offer him the full amount he needed. We broke the deal down into 5 stages, each stage to be released upon re-inspection of the project by our surveyor. The customer was happy with this arrangement and after accepting the offer, the first stage funding was released 48 hours later. The whole project completed in 5 months, then the introducing broker refinanced the bridge (staged facility) with a long term product.
100% behind a great investment … again !
One customer wanted to buy a property for £100,000 but did not have any cash available so needed 100% of the purchase price. We were able to help by taking a first charge over the property. We knew the customer had a good deal because the property was valued at £150,000 and we advanced against the value not the purchase price.
The bank played hardball, Affirmative saved the day
One company looking for a facility of £350,000 was told by the bank holding the first charge that they refused to allow a second charge to be registered. This was a city centre conversion of the upper floors of an existing office building being converted into 9 residential flats. They also had plans to erect an extra floor on the top of the building. As the bank would not allow the second charge, full stage development finance was provided (paying off what was owed to the bank) to allow the build within a 9-month period.
A helping hand on the property ladder even without a bathroom and kitchen!
A very entrepreneurial property developer wanted to raise a deposit for a fourth property he wanted to buy, but had exhausted his liquid cash whilst awaiting the sale of two other properties. We were able to release a portion of the equity tied up in his other properties to enable him to start with his next project, the fourth property. The fourth property had no bathroom or kitchen – some lenders will say it has no value without such utilities – we see the value and were happy to assist with funding utilising the fourth property also.
Permission granted for one property developer
A property developer was having trouble securing planning permission for a fantastic new project. He needed around £175,000 to secure the site but came across difficulties because there were some issues with the planning permission. We stepped in and were able to help. By taking a first charge over the new site, and a second charge over his main residence, he was able to secure the fund, buy the site and begin work!