Case Study: Stepping in with a £3.6m Development Exit loan following Covid delays
Written by Luke Stevenson
Location: Horley
Loan amount: £3,600,000
LTV: 69%
Summary: Development exit loan for a new client who had a 9 unit scheme faced delays because of the Covid pandemic.
As a result of Covid, an experienced developer working on a 9 unit scheme in Surrey experienced delays which pushed completion behind schedule and meant planned sales were delayed.
Approaching practical completion with a development facility but needing to wait longer to sell the units, they were introduced to LendInvest to refinance onto a Development Exit facility to secure the completed properties while they were sold.
This refinancing gave them the breathing space of further time to sell remaining units, settle anxious investors during an uncertain period and clear outstanding debt.
Read more: What goes into approving your bridging deals?
Michael Minnie, a Senior BDM in the Structured Property Finance team, explained how we approached the deal:
“We were very pleased to get this complex loan over the line. Due to the nature of the transaction and circumstances changing during the process we had to work closely with both client and broker to overcome issues. I was grateful for Jason’s assistance by keeping the case on track by keeping all parties up to date.”
Jason Hoad, Managing Director at Boutique Capital, said: “LendInvest at the time were by far the most competitive and they structured the deal accordingly that suited the client’s needs.
“As this was a complex Development Exit it was smoothened considerably by the constant communication between underwriting, Michael and ourselves so that anything where we hit any potential delays was quickly addressed to keep the momentum so the deal hit its timelines.”