Location: Thorne, South Yorkshire
Date: July 2024
Property type: New-build development
Gross loan: £1,640,000
Overview
Our client had recently completed phase one of a large residential scheme near Doncaster and was looking to repay their development finance lender, allowing time to sell the properties.
Service
The case was fraught with difficulties, including the fact that the sole director and shareholder was a foreign national living abroad, which caused some logistical issues for all parties.
We had to take some commercial views on the lack of a credit report and historical issues with the borrowing company involving previous directors.
In addition, our valuation report came back with a figure lower than hoped, leaving a shortfall. We went to the site ourselves to get some further comfort with the current state of the development, which allowed us to push our LTV to the max at a bespoke rate for the client. We then took a further charge on a part of the site that was undeveloped, and we did this without a valuation at all to save time.
Impact
Our borrower was able to refinance his existing lender quickly, allowing a longer sales period for the properties in order to maximise the sale prices and his profit.
Learn more about our bridging loan products here.