£2.3m South London Development Loan Agreed in Testing Times
Economic uncertainty can make sourcing a property development loan challenging, but as this £2.3m deal shows, our experience pays dividends.
Loan Size: £2.3m
Location: South London
Loan Type: Purchase and development
Project: Demolition and construction of 9 flats
About the Deal
A client approached us having optioned a site in South London, to enable a purchase once planning permission was obtained. Their goal was to build nine flats in the sought-after area and they needed £2.3m in funding to complete the project.
As an experienced contractor with similar development projects in the same area, we were sure the client would be considered favourably by lenders. Ultimately, this seemed a strong funding proposition and we were confident of the outcome.
Nationwide COVID restrictions brought about various complications for the client, and an added incentive to obtain the funding swiftly. The South London Location, with its excellent travel links, was a highly sought-after plot so time was very much of the essence.
In times of such uncertainty, we needed to explore all options and provide prompt assurance to ensure the developer would have everything they needed once planning had been obtained.
Having sourced similar funding for a variety of clients throughout lockdown, we knew CBILS (Coronavirus Business Interruption Loan Scheme) was applicable for this client. Offering up to £5 million with no interest for the first twelve months, the scheme was designed with developers specifically in mind.
Having helped us with other developers in the past, this case was no exception. We succeeded in securing the appropriate funding needed for the flats and look forward to seeing the finished development.