Background – Supporting a client through multiple property developments
After a referral from an accountant, ASC Essex successfully secured funds for two of a client’s separate property development projects.
Challenges – Overcoming lender setbacks and funding shortfalls
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. The current lender was unwilling to support the project, leaving the client unable to complete the project.
The first project was a conversion of an old brewery into four apartments and five new houses. The second was a development of nine houses.
Solution – Finding alternative finance when others couldn’t
We helped the client secure the funds he needed for the brewery conversion, with the loan covering 50% of the purchase costs and 100% of the development finance, representing a total loan-to-GDV of 53%.
Following this, we successfully secured the finance for our client’s second development. In this instance, we secured 50% of the purchase costs and 100% of development finance, representing a total loan-to-GDV of 45%.
Even after hitting a snag, with the current lender unwilling to allow a second charge, we still got the funds in place.
Outcome – A completed development and a satisfied client
Our client was delighted that we were able to secure finance for him, especially after being let down by his current bank. He was able to complete the build, finalise the project, and sell the properties.
We take away the hassle of securing finance for our clients, and this case was no exception.
If you think property development finance could work for your business, contact your local ASC office to find out more. We don’t work for the banks; we work for our clients.
