Two Phase Housing Development Finance
UK Property Finance was approached by a local land developer to discuss the purchase of a site with planning consent for 15 detached executive homes in a rural location in Leicestershire.
We advised our clients, post-Brexit vote, to divide the project in two, building the 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 was able to structure a bridging loan to fund 65% of the whole site purchase costs and 100% of construction and related professional expenses. This resulted in a property development finance facility of 4.1 million secured by a first-phase GDV of 5.7 million and a second-phase site of 0.9 million. Overall, the facility equates to 60% of the security value.