Ground up 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