The uncertainty of the housing market has created a notable slowdown in the sales pace. This, coupled with a rise in material costs causing cost overruns, has meant many developers will be feeling under pressure. In many cases, they simply need more time to market and sell their units.
Scenario
Assets: 15 Residential Properties in the UK
Combined value: £10,000,000
Current debt: £5,000,000 with development lender
Scenario: The developer had 10% of their overall construction costs left to spend, but was under pressure from their existing lender. They needed funds to finish the development and wanted raise capital for a separate project.
Solution
We successfully sourced a lender to refinance the development debt within 4 weeks, which enabled them to complete the development and to raise capital towards the next project.
- 70% Loan to Gross Development Value
- 12-month term.
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