BFS has agreed to support a ‘new to market’ property developer at his first project in Solihull, Birmingham.
The client had purchased a three bed detached house in October 2020. The property was in a poor state of repair, however, had major scope to improve and the client recognised an opportunity to purchase this outright and develop further. Plans where agreed to extend the property as a permitted development and create an extra fourth bedroom, significantly adding value and further appeal to the home.
The development loan was required as the client had funded part of the build using their own funds, however, they required more outlay than initially expected. A development finance facility of £369,130 was provided by BFS with a GDV of £820,000.
Time was a factor in this deal as the client had essentially ran out of funding and the scheme had stalled. It was important to finish the project, place the property on the market as soon as possible and secure a sale.
Rebecca Meyers of Bridging Finance Solutions explained: “Property development isn’t as clear cut and simple as many people think, there are often curve balls and unexpected challenges along the way that can quickly eat into funds, cause costly delays and prevent the project ultimately moving forward.
“At this project, the client had underestimated the full outlay and needed further funding to achieve completion. As ever, we worked as part of a team with our client, and clear and open contact with both parties solicitor’s ensured a smooth transaction.
“It was important that the client, as a first time lender, understood the process and we were on hand to support them with any queries they had throughout.”