A client was referred to BFS by a firm of surveyors, who was looking to secure funding to secure a semi-derelict building in Harrogate, North Yorkshire, comprising of ground floor retail and office units over 3 floors above, with land to the rear of the premises. Permitted development rights were applicable to the conversion of the office premises to 6 apartments and 4 new build apartments adjoining the existing structure.
The clients had extensive refurbishment experience but this was their first venture into development. They intended to retain the existing ground floor retail premises and convert into offices for their own use and lease the other part to the client’s wife’s hairdressing salon, and develop out the apartments including the new build element on a fixed price JCT contract with a principal contractor.
BFS were able to provide a £1.1m development finance facility equating to 70% of the GDV, covering 100% of the construction costs. The loan was to be repayable through a combination of sales, re-mortgages and pension purchase.
The project commenced in spring 2017 and c. 70% of the facility had been repaid through ongoing sales at the end of 2017, with the remaining balance expected in early 2018.
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