Development case study: £2.5 million deal in Suffolk
Contact our development team to discuss your upcoming deals.
Location: Suffolk
Loan amount: £2,536,850
LTGDV: 70%
LTC: 86%
Purpose: Repeat borrower requesting development funding to assist with purchase of site and the construction of 6 new dwellings.
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Read more: Development finance in 2022’s new normal
A frequent borrower with our team approached us about funding their latest scheme, a 6-dwelling development in a similar area to where they have been working on other projects.
They acquired the site under an option from the current vendor, and needed finance to complete 25 working days from the planning approval.
To complete the deal, they needed the development facility to be split between a day 1 land loan of £483,000 – to acquire the site – and £1.9 million to build the properties.
With planning already approved and the developers ready to begin, everything was in place for a smooth process.
The GDV is £3.6 million, and the developer’s track record in both the area and on working with us meant we were more than happy to fund another deal for these quality clients.
Head of Development Finance, Steve Larkin, managed the deal with the client and said:
“The timeline to completion resulted in an additional focus to ensure that the due diligence was undertaken swiftly and efficiently, more so than usual. From start to finish, 25 days is very quick in the current climate but by appointing the right professional team, this eased the pressure as the execution was made easier.
“Special thanks to Glovers, Kempton Carr Croft & Jim Whiteman for their time and efforts in moving this through the system with speed. Having worked with these borrowers on numerous occasions, their team delivered all the requisite information in a timely fashion and was always on hand to respond and answer queries. Simple and quick deals are rare in this market, so completing one makes the pressured timing worthwhile”.
Contact our development team to discuss your upcoming deals.
