Background: We were introduced to this commercial development and were immediately keen to help the borrower realise his plans. Working diligently with the borrower's professional team and QS, we were able to advance the funds in order for the borrower to complete the development.
Location: South West London Product: Stretched Senior Term: 14 Months Exit Strategy: Sale of Property Valuation: £2,500,000 Total Facility: £4,556,000
LTV: 71.68% Net Initial Day One, 100% of Development Costs LTGDV: 70% LTGDV LTC: 88% Interest Rate: 0.85% per month Gross Development: £6,580,000
Quirks: High LTC, Relatively inexperienced borrower, commercial development, equity release for sunk costs day one, Historic CCJs and Bad Credit
Problems that arose prior to completion: Down valuation caused from £3,100,000 to £2,500,000 caused our Day One LTV to increase from 60% to 70%
Why we funded it: Confidence in borrower's professional team, pre-let agreement to government body
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