A couple in their 50’s with no property development experience working in the hotel and leisure sector. Between them, the couple owned their own home and a significant pension, but no other property. Their home had a significant plot of land attached and they were looking to downsize as their children had left home and they did not need the space in their current 5 bedroom property, but wished to remain in the same area.
The couple planned to build a three-bed bungalow in the garden of their existing home to live in, and then sell their existing home. They engaged the services of an architect who designed a timber-framed property and obtained the necessary planning consents. The estimated build cost was £400k. The couple intended to use Project Managers providing a full turn-key solution with building contractors on a fixed price JCT contract to carry out the work, which would take 6-9 months to complete. Having gained planning permission, the client’s lawyers split the garden into two separate freehold titles.
Exit strategy was through the sale of the clients existing home for £850k, after the new build property had been completed, and obtained building control sign off.
BFS were able to provide a development finance facility of 100% of build costs and all interest and professional fees in the sum of £450k. Stage drawdowns were arranged over the 6-month build programme in line with BFS’s RICS appointed surveyor inspections.
Work commenced in Spring 2017.