Loan amount: £1.32m
We are often contacted by clients who are looking for exit finance on developments they are undertaking. One such case is when we were contacted by a client who had heard of our specialist lending offering through a LinkedIn developers forum. They had recently completed the build of 5 starter homes in the West Midlands town of Warwick. Being a university town the properties were likely to sell quickly, either for rental as student accommodation, or to new graduates who had decided to make the town their home.
With the site complete, but yet to sell the properties which were originally foreseen to be the exit to their development finance, they were now looking to move on to their next project. However, as the properties had only just gone to market they but did not have the funds available to do so. In order to give them time to market and sell the properties at the right price but also release funds to move on to the new scheme the client came to us in the hope of repaying the expensive Warwickshire development funding whilst also raising an additional £325k against the completed site.
Following a fact find of the situation we found we were able to take security over the freehold of the entire development. By doing this we could therefore raise more cost effective finance, which in turn gave the client the cash they needed to get their next project moving.