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Ground up development finance

development finance
  • 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

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