Developers acquired a small barn site in Pottersbury, securing planning permission to build two one-bedroom, semi-detached homes.
The site, formerly used as office accommodation, was acquired for £132,500 and with a build cost of £98,5000, the GDV was estimated to be in the region of £400,000. Development Finance was needed to carry out the actual build which would be carried out over a six month period – with funding allocated across several stages.
An unusual project from a seller perspective, the original landowner has agreed that the remaining £124,653 owed is deferred until the units have been sold. Several lenders would be less keen to operate on these terms, however, BFS was happy to proceed on the basis that all parties were comfortable with finance structuring, enabling the lending to move forward and ultimately allow the project to be completed quickly.
BFS worked closely with Mark Ellis of Development Money. A highly effective partnership, Development Money is well versed in development funding and have worked on schemes of all sizes and therefore have a sound understanding of what a lender and client requires. This shared knowledge ensured the deal was completed well within the client’s timeframes.
John Hardman, Head of Sales at Bridging Finance Solutions said: “No two deals are ever the same and we consider each application on its individual merit. As a principal lender, we can be flexible and make decisions that aren’t governed solely by pre-defined criteria, recognising the end value of less straight forward development schemes, as is the case here.
“Working with a broker like Development Money undoubtedly helped make the process as streamlined and efficient as possible, each party recognising the challenges and complexities of development finance.”