Background – Supporting a client through multiple property developments
David Bamber, ASC Director in Essex, successfully secured funds for two of a client’s separate Property Development projects. The client was recommended to ASC Finance for Business by an accountant.
Challenges – Overcoming lender setbacks and funding shortfalls
The client was building 16 bungalows in total. The project was a conversion of an old brewery to 4 apartments and 5 new houses. David and his team helped the client secure the funds he needed, and they received 50% of purchase costs and 100% of development finance with total GDV being 53%.
ASC was then able to successfully secure finance for our client’s second development for 9 houses and finance of 50% of purchase costs, and 100% of development finance, to a total of 45% GDV.
The client had funding in place with a high street lender but due to unforeseen circumstances the development went over budget and they needed more funds. David comments, “The current lender was unwilling to support the project which ended up being short of funds and needed further finance to finalise.” The client approached David to arrange the additional funds and complete the multimillion pound project.
Solution – Finding alternative finance when others couldn’t
Can you guess what ASC was able to do? Even after hitting the snag of the current lender being unwilling to allow a second charge, we still got the funds in place for the client to complete the build, finalise the project and sell the properties.
Outcome – A completed development and a satisfied client
Our client was happy that David was able to secure finance for him especially where he had been let down by his current bank, but never by ASC. Our job is to take away the hassle from our clients when securing finance, and our client was no exception to that. Banks prefer ASC applications!
If you think you may be able to take advantage of Property Development finance products, contact your local ASC office to find out more details. We don’t work for the banks; we work for our clients.
