Rescuing a 12-house project

An established building company approached us after a sudden funding issue arose and stalled the completion of their development project.

The building company had purchased a plot in Greater Manchester and obtained planning permission to build 12 residential houses on it. They secured a bridging loan with their original lender, and planned to fund the entire project with it.

However, the lender’s financial circumstances changed unexpectedly once the development was already well under way, and they unfortunately had to pull their funding. This left the building company with a plot of half-built properties and no money to finish them off – every property developer’s nightmare.

How We Saved the Day

The building company came to us and explained their predicament. Upon reviewing the background information, we were happy to take them on as a customer.

We organised a loan structure for our new customer, which would allow us to redeem their current charge with their original lender and in turn create a first charge for ourselves. In doing so, we were then able to lend the customer extra funds in the first release stage, which they needed in order to put their development project fully back on track and catch up with their original build timescale.

How We Helped to Push the Project to Completion

Given the large scope of the development, with multiple house builds taking place simultaneously, we keenly monitored its progression. We carried out regular valuation reinspections, and our underwriters made several site visits, in order to ensure that our stage releases (of funding) were being used as efficiently and effectively as possible.

At the end of it all, our customer made a net profit of between £400,000 and £500,000 – all thanks to our flexibility.