Unprecedented development cost overruns leaves builder short of funds and site is on hold
Region:
Debt Raised:
Devon
£450K
The Scenario
Client had delays due to elements out of their control that cleared out their contingency funding and left the works on site on hold. Needed further finance to get the houses to practical completion and onto the market. However their existing lender does not issue any further funding under these circumstances. The client had value in the site, but could not release the funds without full repayment to the existing lender.
The Solution
The client contacted us and explain their situation. We started the funding process and sourced a lender who was happy to support.
However we also reviewed the ‘exit’ or repayment plans for the client and gave the option of refinancing onto a buy to let mortgage rather than sale. The yields in the area were strong, coupled with the demand – we put together an alternative solution to compliment sale of properties to the client. They moved forward with our solution and both properties are now tenanted and we raised further funds for the clients deposit on their next site.
Similar?
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