Two phase housing Development Finance
We were approached by a local land developer to discuss the purchase of a site with planning consent for 15 detached executive homes in rural location in Leicestershire.
We advised our client, post the Brexit vote, to divide the project in two, building a first phase of eight houses. This approach would enable the developer to test the sales market and at the same time explore the possibility of planning enhancements on the remaining land.
UK Property Finance were able to structure the bridging loan to fund 65% of whole site purchase costs and 100% of construction and related professional expenses. This resulted in a property development finance facility of 4.1million secured by first phase GDV of 5.7 million and second phase site of 0.9million. Overall the facility equates to 60% of security value.