An established building company approached us after a sudden funding issue arose and stalled the completion of their development project.
The building company had purchased a plot in Greater Manchester and obtained planning permission to build 12 residential houses on it. They secured a bridging loan with their original lender, and planned to fund the entire project with it.
However, the lender’s financial circumstances changed unexpectedly once the development was already well under way, and they unfortunately had to pull their funding. This left the building company with a plot of half-built properties and no money to finish them off – every property developer’s nightmare.
How We Saved the Day
The building company came to us and explained their predicament. Upon reviewing the background information, we were happy to take them on as a customer.
We organised a loan structure for our new customer, which would allow us to redeem their current charge with their original lender and in turn create a first charge for ourselves. In doing so, we were then able to lend the customer extra funds in the first release stage, which they needed in order to put their development project fully back on track and catch up with their original build timescale.
How We Helped to Push the Project to Completion
Given the large scope of the development, with multiple house builds taking place simultaneously, we keenly monitored its progression. We carried out regular valuation reinspections, and our underwriters made several site visits, in order to ensure that our stage releases (of funding) were being used as efficiently and effectively as possible.
At the end of it all, our customer made a net profit of between £400,000 and £500,000 – all thanks to our flexibility.
Bank or Building Society Let You Down at the Last Minute?
Our property development loans can be used to fund all kinds of projects – from modest single-builds to much more complicated and large-scale developments. Whatever your goal, we can provide the funding you need to achieve it – and quickly.
Fill in our straightforward enquiry form and we will be in touch to discuss the specifics with you. Call 08000 44 84 84 to speak with one of our underwriters today.