Our client is an experienced developer-cum-landlord with a portfolio of 10+ rental properties. He also works full-time as a chartered surveyor.

In 2013 he teamed up with two other developers to build nine town houses in West London. For the project, they each established a Special Purpose Vehicle limited company in which to hold three houses each. They then took out £5.8m of development finance between them to get the houses built. On completion of the project, our client approached us for help in raising £1.8m to repay his share of the development loan. On top of this he wanted to raise a further £1.94m to fund other projects in his pipeline.

There were numerous challenges with this deal which meant we would need to approach a specialist lender for finance.

1. Adjoining properties are often deemed high risk because lenders are exposed in one small area.
   
   
2. There were no tenancy agreements in place at the time of the application.
   
   
3. The client has a complex income structure.
   
   
4. We needed to keep in sync with the other directors so that the development loan could be repaid by all three developers on the draw down date.
   
   
5. The client was looking for a loan in excess of £1m for each property.

We approached an intermediary only lender which we know considers larger loan amounts on a case by case basis, although as a standard rule it does not go above £1m. Happy with the applicant's experience and the valuation report, the lender agreed to the following terms: 

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.