Development exit finance (pre PC) to lower rate and release funds for next site
Region:
Debt Raised:
Berks
£2.4M
We arranged exit finance for another scheme by this developer, and he was delighted for us to set up a similar solution on this project.
The Scenario
Client was nearing completion on the final of 3 properties and had funding in place and marketing was going well regarding sale of the properties.
However a highly sought after site had come back onto the market, however our clients funds we tied up in completing this development. They approached their existing lender, who stated they could not assist with a refinance as the houses we’re pre practical completion/sign off.
The client was referred to us by an existing client – after all it costs nothing to talk through and everything to gain if a solution can be sourced.
The Solution
We’ve got several lending partners who will not only fund pre completion developments, they will complete the funding usually at an overall lower rate and cost due to the enhanced site value compared to when the initial funding was secured.
We managed to refinance the existing lender, plus raise 50% of the funding for the new site purchase. We then secured funding with a different lender to complete the purchase of the new site with no cash outlay to the client.
They’ve since sold two of the three properties and repaid the loan in full. Plus they’re already on site, with little down time (and no loss of workforce due to the new site) and 4 new houses to build with no existing debt.
Similar?
If this sounds like something you would like to do, it’s worth us having a 5/10-minute conversation. It costs nothing to talk through and even if we don’t find the immediate solution, we can certainly advise and plan how it can be achieved.
Get in touch here or use the form below, we can call you during the day or evenings/weekends.
Let us know when suits and we’ll find a solution/make a plan.