Funding for development of 9 starter homes
The client: A successful businessman, who had recently sold his long-established food business and was looking to become a full time property developer.
Property development experience: Alongside running his business, our client had already built and sold a number of residential developments with his father, who owns a building company.
The project: The client bought a small brownfield site which had formerly operated as a garage in a village within commuting distance of Peterborough.
When the client purchased the land, it had planning permission to build nine three-four bed townhouses. However, after discussing the plans with several local estate agents, he came to the conclusion that the houses weren’t the right sort and might be too expensive for the local market. He re-worked the project and went back to the Council seeking permission to build nine two-three bed starter homes with gardens and two parking spaces per house. Once the application had been approved he came to us for help in sourcing a lender.
The clients' usual lender had withdrawn because it didn't like the fact he had sold his food business, which provided the lender with additional security.
The clients' high net worth status and demonstrable experience, meant we were able to source funding from a lender who was willing to lend up to 70% of the Gross Development Value.