Development Exit Finance
£1.3m Development Exit Saves Isle of Wight Project
Loan Size: £1.3m
Location: Isle of Wight
Loan Type: Development Exit, Refurb & Land Bridge
Security Type: Residential & Land
Term: 12 months
About the Deal
Our client was looking to buy back his development that had been put into receivership by the previous lender. He had 10 nearly completed units that needed some interior works to be finished before he could sell. He also has a plot of land that has planning for 3 more residential units that he will develop out and sell when complete.
There were a number of challenges surrounding this deal. The key one being that the previous lender stopped funding the works as they have essentially gone out of business. They were no longer honouring the loan the client had signed up to as they were out of money. They then put the client’s site into receivership. We were approached to help rescue the scheme for the client and turned to one of our trusted funding partners to get this done. They ensured the client did not lose the scheme he had worked long and hard on, not to mention invested a large amount of his money into.
With the help and support of the funder, we approached the client and were able to buy the units back out of receivership and transferred them into a new company. After a nearly three-year battle with the historic funder and receivers, he can now complete the residential units and realise his profit. This project was extremely close to going horribly wrong for the client. However, through our relationship with the new funder and some creative thinking along the way, the client is now free to get on with what he does, build high quality residential properties.