We were approached recently by a landowner who had obtained planning permission on a parcel of her land, adjoining a business premises.
She had no development experience, and required help to raise the development finance and project manage the development.
We approached the “usual” development lenders but were unsuccessful.
They were unwilling to lend to someone with no experience, and on a “small” £300k building contract.
Then we secured lending based on PropVestments’ track record from one lender, to undertake the project as a joint venture. However this was the week leading to BREXIT, and so at the last minute even this lender pulled the plug.
Another development lender, however their rates were comparable to bridge lending and to make matters worse, their lead time was 6-8 weeks for credit approval.
Solution: Non traditional Development Finance
Finally PropVestment arranged finance with a private bridge funder, with favourable rates and monies disbursed within a few days. To make matters even better, the bridge was structured like development finance with monitoring surveyor sign off in stages. This means the landowner does not have to pay the interest on the full amount like many other bridge loans.
The build process is well underway, a happy land owner, and solution provided in a tricky situation.
Development can be undertaken by anyone, with the right guidance and partners you can make a success of it. Do not be intimidated by rigid lenders and red tape.
PropVestment can help project manage, secure development finance and recommend contractors and property professionals.
- Do you have a plot of land which has development potential?
- Do you need advise in how to maximise the potential value of your land?
- Do you need help securing development finance?
We have experience and the professional network that can ease the stresses of property development and allow you to realise the returns hidden in your property.