| Property | Ground-up scheme of four detached houses |
|---|---|
| Location | Near Maidstone, Kent |
| Client | Experienced local builder with several completed schemes |
| Product | Development finance |
The challenge
The builder had planning permission and owned the land, but needed funding for construction. Cash flow depended on the facility being released in stages as the build went up.
What we did
We arranged development finance covering most of the build costs, with the land value counting towards the builder's contribution. A monitoring surveyor reviewed the costs and programme before the first drawdown. Funds were then released monthly against the surveyor's valuations of work done. The exit was the sale of the four houses.
The outcome
The builder completed the scheme and repaid the facility from the sales.
Development financeFunding for ground-up builds, conversions and heavy refurbishment, released in stages as work progresses.
Learn moreImportant: Bridging and development finance are short-term, secured borrowing and can be expensive. You need a clear, realistic exit plan. Loans secured on a home you live in may be FCA-regulated; most others are not. Your property may be repossessed if you do not keep up repayments.