Bridging Finance Solutions has agreed to fund a new build project with first time developers, both of whom are approaching retirement.
The husband and wife team had secured planning for six two-bedroom houses on the site of a self-owned car park in Leicestershire and were keen to develop the homes and sell on, boosting their pension pot.
The couple had explored and researched the development process thoroughly prior to approaching BFS and were keen to head down the route of bespoke development funding as it allowed them to realise the exact monies at the appropriate time for the contractor in line with their cash flow. Using this method also allowed BFS to minimise interest costs for the client and ensure continuity for the contractor.
John Hardman, Head of Sales at Bridging Finance Solutions explained: “We were confident in our decisions to provide finance for the clients even though they had no previous development experience which could well reduce the appetite of some lenders. We had a meeting with the client very early on in the process and quickly established that they had a Grade A professional team around them including project manager and contractor.
“This was a lovely scheme to be part of as both clients are approaching retirement and were looking for an intuitive way to ‘boost’ their pension incomes and building on land that had been used for car parking at their commercial site was a brilliant way of developing ‘redundant ‘ land and realising additional capital.”
BFS provided 100% of the build costs for the whole scheme and the site including all six homes are expected to be valued in the region of £1,200,000 upon completion.
Rajesh Malhan, Broker at Pure Living Partnership commented: “This was a very challenging project for a first time developer, fortunately, BFS could see past this where other lenders may have classed this lack of experience as a barrier. They did this by working collaboratively with myself, the project manager and professionals attached to the scheme. The whole process gave our clients great peace of mind that they were in the hands of a competent lender who will see the scheme through to completion.”