Development Exit Finance
£6.5m in Short-Term Finance Secured for Transformation of Dilapidated Prime London Home
The lending landscape can change quickly, especially if you’re waiting years for planning permission. That was the case for this recent client seeking £6.5m.
Loan Size: £6.5m
Location: Notting Hill
Loan Type: Development
Security Type: Single Unit House
Term: 24 Months
About the Deal
The client owned an old, dilapidated house in prime London. He had outlined planning but required a bridging loan that was quickly able to be converted to a development facility when full planning would be granted within two months. They would then develop a super luxe single unit that was completely unique to the area.
The Challenge
The lender pool for high-end simple unit developments is nowhere near as deep as it was four years ago when the client optioned the site and began the planning process. However, a suitable facility was sourced and secured allowing the client to finalise planning and build out the high spec property in style.
Brexit and then the Covid pandemic also impacted the development process. However, we had arranged the debt with a funder that was fully supportive and believed in the client’s vision for the property.
The Results
The client is now showing the recently finished development and, although the original Red Book valuation came in at just under £10m, offers are being received above the £14m mark.