Raising £934k to build flats next to railway

The client: A businessman with a successful property development portfolio. Also the owner of three wine bars.

Property development experience: Our client has over 10 years' experience in new build residential property development with the majority of projects being constructed in London.

The project: We were approached by a broker who was looking to secure finance for his client to build a block of eight flats next to a railway line in North London. 

The client had purchased the plot of land with his father in 2011, at a time when the availability of property development finance was limited. Whilst waiting for the market to pick up they successfully sought planning permission to build a block of eight flats, after which his 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 small development in such close proximity to a railway line and although none was found on site, Japanese Knotweed was identified nearby. 

Land purchase price: £600,000

Build costs: £650,000

GDV: £1,750,000

Loan amount: £934,000

LTV: 53% of GDV

Estimated completion date: Summer 2015

This is just one example of how the deal placement team has helped secure property development finance. More case studies can be found on David's, Popy's and Gareth's profile pages.