Our client was an incredibly experienced developer, looking for certainty of funding, so that he was able to build up a pipeline of new sites and build-out existing schemes on his own terms, rather than having to wait for the cumbersome decision-making of lenders.

Location : National

Loan Type : Revolving Credit Facility / Bridging & Development

Loan Size : £30m

Loan to Value : 65% LTGDV and 80% LTC

The Situation

Our client was a property development industry veteran, with over 25 years of development experience. Their frustration was the granular nature of their existing funding. Dealing with a new lender, or taking a new, separate loan from an existing lender each time they wanted to acquire a new site, or advance the build of an existing site, was proving time-consuming and curtailed the deal-making instincts they had as a business.

The Challenge

Development Finance is the riskiest of all loans, hence all lenders like to keep a close eye on their borrowers and their individual schemes. To get a lender to trust a client to make decisions on sites with less scrutiny is extremely difficult.

The Outcome

A revolving-credit facility of up to £30m over a 4-year loan term, allowing our client to build his business, by taking advantage of the certainty of funding to allow quick manoeuvring on new and existing stock.

The streamlined underwriting, valuation and legal process for new deals, meant the lender committed to approving new loans within 48 hours of receiving the valuation report.