A hard-earned deposit saved at the last minute

Returning developers came to us looking for help in the purchase of a plot in Peterborough, on which they planned to build a detached property, with a view to selling it upon completion. They already had planning permission in place – it was simply a case of securing the funding.

We had funded two previous projects for these developers, after other lenders turned them down, so we had already established a strong working relationship with both of them and their broker. As such, we had every confidence that they would succeed yet again with this new development, which was their most ambitious yet, so we were more than happy to provide them with the finance they needed to get a third success under their belts.

How We Helped: Details of the Loan

We lent the developers £229,500 gross, with a loan-to-value ratio of 65%, and released the finance to them in stages.

The first stage of funding was £48,750, which the pair put towards the purchase of the plot. It transpired that they needed to borrow more in order to carry out the build properly; our flexibility meant we were able to increase the loan amount accordingly, so that it met their new requirements.

As always, we remained in close contact with both developers and their broker throughout the entire project, which thankfully turned out to be their most profitable to date, and we look forward to assisting them in their future development projects.