Bridging Finance Solutions has completed a quadruple development finance loan on a single site in the Midlands for £1.5milllion.
The client had purchased a large site adjacent to their home, using a business a loan. Planning permission was secured for four properties at the site, in turn significantly increasing the value of the land.
Two family members agreed to purchase the plots from the company, each repaying part of the loan as individual loans. Bridging Finance was able to lend 100% of the purchase price plus construction costs, as combined they met the firm Loan to Value criteria and all parties involved had strong exits. Plot 1 was built first and the loan has since been repaid. Plot 3 began next and has reached roof level. Plot 2 has not yet had its first drawdown but will be in place by September and upon completion will be used a Buy to Let. There are plans to begin the fourth and final build next year.
John Hardman of Bridging Finance Solutions explained: “This was a fairly complicated deal involving several individuals with multiple factors to consider. The client was an experienced property developer which undoubtedly helped the process, and there was a real team ethos to make this work.
“As an independent firm, we were able to take a broader view on the proposal and finances and provide full build and development costs recognising the value of the land, the quality of the build and the final value. This has and continues to be a great project that has now surpassed the halfway stage and we’re beginning to see some fantastic results.”
The four builds have each been designed by a single architect yet are unique in size, style and layout.
John added: “What originally began as a single loan for one dwelling really did gather pace and we were able to support the client as their ideas and plans evolved.”