Our developer client had identified a site and agreed a loan facilty with his bank. The basis of this facility was that the developer would put in all his funds first, with the bank then providing their share. The client bought the site with his own funds and started building. Once he had injected all his funds he approached his bank again to activate the agreed facility to complete the development. At that stage the bank refused the request, as their policy had changed. This left the developer in a desperate situation with a part completed site with no prospect of finishing the work through no fault of his own. No other high street bank was interested in helping him.
Fortunately, the client was referred to CD Property Finance and we quickly identified that the situation was retrievable. We introduced the client to a specialist property lender who could see that there was little risk in lending to complete the project as the site was free of charge and the ultimate LTV (Loan to Gross Development Value) was likely to be at a level of well under 50%. The lender very quickly provided the necessary funds and the developer is now bringing the scheme to a successful conclusion.
For more information contact Chris at CD Property Finance.
Email: chris@cdpropertyfinance.com
website: www.cdpropertyfinance.com
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