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Multi Property Part Residential / Part Commercial Development in Essex
Bridgingloans.co.uk has today successfully arranged finance for a multi-unit residential and part commercial building project in Essex. The funding required was £3.5million, the site valuation £3.5million (already owned outright by our client) and the GDV £10million.
Our client had purchased the brown field site via his limited company for cash in 2005 but despite achieving planning permission in 2006 for the required development, he held off on the eventual build until the economy improved and additional finance options became available to fund the project.
After extensive research, he had been quoted standard monthly commercial bridging loan rates of between 1.25% and 1.5% (up to 25% per annum) but this was going to severely eat into the client’s profits and potentially make the project unaffordable. Through our various industry related links and partnership arrangements we managed to source a 2 prong development rate starting at 4.5% per annum plus fees and roll ups.
Not surprisingly the client jumped at this offer.
Additionally as the site is already owned outright we managed to obtain an initial advance to fund payment of the ground work etc. that the client had impatiently started prior to the funding coming through. The balance of the money was released in tranches to complete the remaining stages of the project through to completion.
Once finished, a number of the 2 and 1 bed flats and commercial units were sold to repay the development funding and the balance of the property refinanced and kept for the rental income. The monies raised from the refinance will be used to plough into the client’s next project which although smaller is just as lucrative due to the on-going finance we have managed to arrange for him.