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100% of the build costs received within six weeks

100% of the build costs received within six weeks

The clients: A married couple – both professional property developers with a large portfolio of successful residential developments.

The couple have been developing properties for selling and renting out over the past 14 years – this is their full-time occupation and only source of income.

The project: The couple had purchased a large plot of land in Norfolk for the development of a housing estate back in 2010 – this is owned outright. They had already completed the build of 41 houses on the site and sold them on prior to contacting Mortgages for Business for further finance.

They needed development finance for the construction of an additional three detached homes on the same estate. Instead of selling the properties, this time the couple planned to refinance them onto a buy to let mortgage and rent them out, each for £2,000 a month.

They were keen to receive the funds within two months, so that they could continue with other development projects already in their pipeline.

The finance: They were looking to borrow £500k through their limited company to cover the entire cost of the build, which is not something many lenders will consider.

We approached a lender who we thought may be able to help. It offered to lend the full amount within six weeks. Here’s why:

• The developers already owned the land on an unencumbered basis

• They had been granted planning permission and were able to provide the necessary documents

• They were able to provide the contractor’s accounts to prove they had carried out a project of that
   size before

• They were experienced developers who had successfully built and sold properties in the same area

• They were able to provide a premier guarantee from the architect and structural surveyor

Property Details

The clients were formally offered the following terms:

Land purchase price: Already owned

Build costs: £500,000

Gross development value: £1,000,000

Loan facility: £500,000

LTV: 50%

Rate: 6.99%

Term: 18 months

Facility fee: 2% (£10,000)

Exit fee: 1% (£5,000)

Consultant: Peter Barnes01732 471641


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Mortgages for Business Ltd is registered
in England and Wales No. 2502713.

Registered office:
17 Kings Hill Avenue,
Kings Hill, West Malling,
ME19 4UA.

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Mortgages for Business Ltd is authorised and regulated by the Finance Conduct Authority (No. 313537) to transact regulated mortgages. We are a credit broker, not a lender. We work with the whole of market in sourcing a lender for you; we may receive a commission from the lender, and this amount varies between lenders. The FCA does not regulate some investment mortgage contracts. Mortgages for Business Ltd is a founding member of the National Association of Commercial Finance Brokers, the body that promotes best practice within the commercial finance industry. Telephone calls may be monitored or recorded for training purposes.