Bridging Finance Solutions has revealed details of its latest development finance deal, a £417,000 loan to a Midlands based client.
The professional female developer acquired a neighbour's property which sat on a large plot and secured planning for four detached properties. The first to be built will be a three-bedroom bungalow.
The client was awaiting the sale of her home, which once completed, will be used to repay the loan in full. Therefore, interim funding was essential to secure the plot.
Steven Smith, Business Development Manager at BFS explained: “This was a fairly straight forward development loan where the client needed to access funds quickly as the sale of her own home hadn’t completed.
“The value of the land at £175,000, coupled with the build costs, were significantly lower than the GDV of £700,000. Therefore all of the figures stacked up for us and the first drawdown has now been finalised. This is yet another example of BFS supporting the smaller developer who would have been forced to walk away from the project due to funding access.”
Steven added: “We are there to support our clients and devise viable and sustainable solutions that work both short and long term. In this instance, the client is a director of the business that owned the land and the client wanted to build her own home, therefore she had to sell the land to herself as this is a regulated facility.”