A small private developer has identified the development potential of a former pub, The Post Office Hotel, located in the centre of Kirkham (between Preston and Blackpool) with potential for conversion into three self-contained apartments with the addition of three new build townhouses on the same site.
The Managing Director of the company, an experienced builder and small site developer, has used bridging finance previously and therefore understood the process. The client was keen to secure a development finance facility to fund all development costs, totalling £423k. The land (valued at £150k) acted as security for the bridging loan.
BFS was introduced to the client by Napthens solicitors. On the day of the introduction, experienced BFS team members visited the client’s home that same day. By the following day, the client had received a facility letter in writing. A different lender had funded the client’s previous developments including this one. However, the client had been waiting for a formal offer for some time. The deal via BFS was subsequently secured on turnaround time.
BFS has approved an 18-month development finance facility. The client expects to complete the build in nine months. The value of the properties when finished are estimated to be in excess of £675k, resulting in a healthy return on investment for the client
Lee Gilmore of Bridging Finance Solutions commented: “Development finance can be considered a complex form of lending and the process can be labour intensive, time-consuming and lengthy.”
He continued, “At Bridging Finance Solutions, we have vast experience working with developers and builders and aim to demystify the process, offering a streamlined and uncomplicated approach that unlocks much of the complexities that surround a development bridging loan.”
“In this instance, we were able to work with the client to provide funds within days rather than weeks enabling him to lock down the deal and move forward with the next project.”