Case study: £2.8 million development finance loan for residential development
Written by Luke Stevenson
This is an example of a development we are currently supporting with a repeat borrower of ours. To learn more about our offer please visit our Development Finance page.
Developer: Ingleton Luxury Holdings Limited
Location: Essex
Request: Assist with the acquisition of a site with planning and funding for the first phase of development
Loan total: £2.8 million
LTGDV: 65%
LTC: 90%
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The borrower originally required financing to assist with the acquisition of a site, with planning for 18 semi-detached dwellings and commitment for the first phase of development.
The first phase was with an initial commitment for 12 houses, with the second covering the remaining 6 houses.
Like all developers in this environment, the ongoing Covid-19 crisis has posed challenges that the client has had to overcome. While following government guidance, the client was able to maintain good progress on site, assisted by prompt drawdowns from LendInvest to assist his cashflow.
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When the crisis hit, the team supported an extension to the build-term initially agreed so the developer could finish the development within term of his loan agreement.
Phase 1 is nearly complete with the client lining up term finance with LendInvest. Phase 2 is due to commence shortly with further funding provided by LendInvest to fund the development.
A fifth development loan is credit approved and due to complete in November 2020.
Tom Ingleton, CEO at Ingleton Luxury Holdings Limited
“I have been working with James and LendInvest since 2017. We have now successfully completed four developments with a fifth due to commence shortly. What I appreciate from a lender is the ability to act promptly and be commercially minded, and LendInvest has done this every time, which has been of great benefit to me as a developer.
“The support that LendInvest has given us over the last 4 years has been second to none which has enabled substantive growth for us. James and the team always turn drawdowns around in 24 hours so my cash flow is not impacted, which supports me and my team to progress the development as quickly as possible.”
James Russell, Relationship Director at LendInvest
“It is great to have an ongoing relationship with Tom. We have been able to work with him during the challenging times associated with Covid-19 as well as support him on another new development which will be our fifth scheme with the client. Ingleton delivers a quality product in areas he knows well so the price point and product is in great demand.”
Find out how to get reliable funding for every stage of your development project on our development finance page.