What was needed?
Our client needed to borrow a substantial amount in order to redeem a bridge loan that they’d used and then convert office space into 40 residential units and an extra floor for a further 10 residential units.
What did we do?
We sat down to understand what the project was, what it required, and what sort of experience our client had.
After understanding that they had quite a lot of experience in property development we decided to help them arrange some longer term development finance so that they were able to complete the conversion and sell their properties.
The Gross Development Value, or GDV, which indicates what the development may be worth once completed, was £12,000,000. Our client took out a loan for 66% of the GDV in order to complete the works they needed
The rate of interest on the loan was 6.5% PA.
Because it was going to take longer for our client to complete the works, we arranged a longer term development finance option over 14 months.
The loan was complete when our client completed the sale of their properties, using the proceeds to repay their development loan.