SPF steps in to fund part-completed development, from application to completion in 3 days.

A client approached us as he was building a house and required further funds to make it wind and watertight and complete the project ready for sale. It was worth ￡600k in its current condition, and the GDV was ￡1m.

The client had run out of money for the project and had builders on site waiting to be paid. He had anticipated refinancing some of his other buy-to-let properties but this was taking too long to implement and he needed the funds extremely quickly.

The client had been quoted for a ‘finish and exit deal’, by a development lender, however the lender would have needed a full development appraisal and up to date Monitoring surveyor surveys which the client did not have.?

This would take a minimum of 10 working days just for the valuation, the timescales would not work as the client needed the money within a few days.?

We were able to approach one of our ‘go to’ bridging lenders, Together, who we use for speed, and obtain a bricks and mortar valuation. We submitted the application on the Wednesday, Thursday the valuation was carried out and Friday the case was funded. Even for a standard valuation the report was turned around extremely quickly.

These timescales were very impressive and we were only able to structure this deal and complete so quickly due to our market knowledge. We knew that we could arrange a loan based on the current valuation, not the GDV and go down the bridging route as opposed to an arduous development loan on tranches.

A less experienced broker may have gone down the development funding route which would have been a much more timely process and would have caused a massive delay to the project as the construction would grind to a halt costing the client money, and he would not be able to market the property as soon as he would like.?

We managed to secure a ￡300,000 loan for the client, at a highly competitive rate of 0.75% per month, and no early repayment charges or exit fees.

Ultimately the client was delighted with the result, and is now able to complete the house and move onto his next project and this has eliminated a lot of stress and anxiety for him.

14.07.23