We recently completed a loan for an up-and-coming developer who had just completed his first development and was keen to release equity, tied up in this project, for his next development.
The development of 6 apartments was completed to a high standard and is well located in a popular seaside town. Marketing has commenced and the scheme has generated strong interest to date however sales were not expected to materialise before purchase of the next site.
Our loan refinanced existing debt of £250k and released a further £250k to the borrower for the next development. Our repayment will come on sale of three apartments. In these uncertain times, having an alternative exit strategy is also very important. These properties are in an area of high rental demand, the borrower has the option of retaining as a longer-term investment on a standard buy-to-let loan product should the need arise.
Our loan to value was 60% with interest retained. Exit by way of sale or refinance will come within the twelve-month term.