The Client

The D family are experienced property developers having built ground up housing developments and apartment buildings across the East London and Essex borders. They recently secured a site next to an exising site they owned. The site would enable them to submit a planning application in across both site for approx 100 units. The vendor required a quick sale with an asking price of £2.6m, the family required a loan of £1m very quickly.

The Challenge

The loan to value was relatively low, however the fact the site didn't have any planning agreed of even outline planning obtained, most lenders wouldn’t be able to assess the value. Our client, being an experienced developer was confident on the value and was happy to pay the price being asked.

The Solution

We secured a bridging loan of £1m using the land as security and also providing another asset (which was mortgaged to another lender) purely as a comfort charge for the lender. With this additional security the lender was happy to provide terms at a rate of 1% for a term of 12 months. The clients didnt need it for that long as they were selling another built development which they used to repay the loan. Now they are looking forward to securing the planning for their 100 units.