- The prospect required a net facility of £950,000 (100% of the build costs) to fund the development of 14, one and two bed, new build apartments
- The facility was offered on a 1st charge basis with the day 1 value being £250,000 and the GDV being £1,700,000
- Planning had been obtained by the borrower and a JCT contract had been entered into with a 3rd party contractor to develop the apartments
- Funding had been agreed to fund the development with another bridger however due to COVID-19 the lender had pulled all offers of funding
- Works had begun which had been initially funded by the prospect however they could not keep up with the full cost of the development
- Funding was required urgently as the contractor was threatening to walk off site unless they received further payments
- An initial advance was made of £120,000 with the balance of the build costs being made available on monthly drawdown subject to QS sign off
Ground up development finance
