This property developer bought land in 2019 which formerly housed a window manufacturing industrial site and has now been turned into a residential development consisting of 11 three-bedroom houses which completed in 2021. With unexpected delays getting in the way of securing the sales, the developer contacted out to industry broker John Waddicker of Positive Commercial Finance to explore their refinancing options to not only help finalise the existing project, but also start raising finance for upcoming developments.
Having previously worked with her on several projects, John reached out to Ultimate Finance’s Regional Director Kay Williams. He explains, “I have worked with Kay for over five years, and I have a good understanding of Ultimate Finance’s criteria and appetite when it comes to Bridging Loans, so I knew that they would be an ideal funding partner for this client thanks to their range of residential loans. Discussing the project with Kay couldn’t have been easier, with great lines of communication and speedy responses meaning that we had a proposal put together quickly and easily, something that is not only appreciated but very important in my line of work”.
Ultimate Finance proposed a Development Exit Bridging Loan to provide £695k to the developer to help with completing the repayments of an expiring loan and provide a quarter of a million pounds to put into their next project. Kay says, “The main shareholders of the development have a proven track record, with 20 years and hundreds of units already developed, and I am very proud to have been given the chance to support them. This project has seen many ups and downs outside of their control, with the pandemic and administrative delays getting in the way of selling all the properties, and so a Development Exit Loan was the perfect solution to help bridge the resulting gap in time and finances”.
Ultimate Finance’s Development Exit Loans are designed to help with the refinance of an existing development facility where a project is 100% completed or only has minor snagging remaining. The solution offers up to £3m, up to 75% LTV of Open Market Value with rates starting at 0.89% per calendar month. Residential Bridging Loans can also be tailored to support a new investment purchase, the refinancing of projects with works remaining, the funding of up to 100% of refurbishment projects, or raising capital against an investment portfolio or unencumbered assets.
Kay adds, “Where property is concerned, flexibility and speed are everything, and so we have developed a portfolio of solutions that ensures we directly target the needs of property developers through tailored funding. To help keep things moving, we also commit to having a decision in principle within just 24 hours, and a fully credit backed offer within 72 hours, so that both our network of Introducers and developers can be certain that they will receive a definite answer without unnecessary delays.