Landlord with no development experience receives £650k to build two semi-detached homes
The client: A full-time landlord with a portfolio of over 20 rental properties in Kent. The client has no property development experience but has carried out refurbishment works on rental properties in the past.
The project: Around six months ago the client had been made aware of some land for sale near his home in Orpington on which stood some derelict garages.
The client purchased the site with the help of short-term finance and subsequently obtained planning permission to knock down the garages and build two 4-bed semi-detached houses which should sell on the open market for approximately £550k each.
The finance: The client needed a loan facility of £650k for the build and to pay off the bridging loan. We approached a lender that accepts applicants with no development experience as long as the project is to be carried out by qualified contractors including a project manager.
We helped the client put together a proposal which included:
- A full breakdown of the build project including details of the contractors
- Details of the client's residential property portfolio including examples of his refurbishments
- Business and personal accounts, bank statements and tax returns (SA302s)
Happy with the proposal and the client, the lender agreed a facility where the funds could be drawn down in stages subject to sign off by a surveyor.