Raising £934k to build flats next to railway
The client: We were approached by a broker who was looking to secure development finance for his client, a businessman who owns three wine bars.
Property development experience: In addition to operating the wine bars, the client has more than 10 years' experience of building residential properties, mostly in and around the London area.
The project: In 2011, the client and his father purchased a plot of land in London which abutted a railway line. At this time, the availability of property development finance was limited, so whilst waiting for the market to pick up they successfully sought planning permission to build a block of eight flats. After this, the client's father retired, transferring the balance of his interest in the land to his son by Deed of Gift.
The challenge: To find a lender willing to finance the project in such close proximity to a railway line and, although none was found on site, Japanese Knotweed was identified nearby. We took the case to one of the challenger banks. The valuation report found the site to be an ideal location for a residential development. It also confirmed that the knotweed posed no immediate threat and so the bank offered the following terms: