by Conrad Robins | Jun 10, 2024
Background – property developer seeks finance for new project
Thanks to Steve Bealing from the ASC Surrey office, a Surrey property developer is on the way to undertaking his latest new build development.
Our client, an established property developer, approached Steve to assist with securing the finance for his latest project – a new build development of three luxury homes in Woking, Surrey. He needed to borrow £2.2 million (65% of the gross development value) to fund the land purchase and build cost. Having worked with Steve on several other schemes over the past 10 years, he was confident ASC could make the deal happen.
Challenges – legal and access issues delay progress
Within a month, Steve secured loan approval from Close Property Finance, a specialist property development funder. However, the land purchase subsequently threw up several legal complications that threatened to jeopardise the deal. There were two access issues – a private road to the site and a footpath across the site, as well as a concern about getting all the utilities to the site.
Solution – ASC’s expertise and communication kept deal on track
Steve liaised extensively with the legal parties – his client’s solicitor, the bank’s solicitor, the vendor’s solicitors, and the estate agent to keep the deal on track. Eventually, the issues were resolved, and the deal was able to progress.
Fortunately, having chosen a specialist lender with solid experience in the property development field, the deal didn’t fall apart. As the bank is a specialist in this area, it was undaunted by the issues and has the support of a robust legal department. Many other development funders would probably have walked away.
Outcome – funding secured and project moving forward
Our client is delighted to have secured the finance he needs and plans to have all three new homes built and on the market within 12 months. He commented:
“Steve has been a consummate professional at all times and has been of great value in helping me to acquire funding for any of my development sites. He was especially of great help on my last site, where we were faced with quite a few legal issues.
After these years, I have come to trust and value his opinions, and he is always the first person I go to when looking to secure funding and will continue to do so in the future.”
At ASC, we have extensive experience in property development finance and can assist with ground-up developments as well as conversions, from single properties to multi-unit sites. We are happy to work with experienced developers and new entrants alike.
by Conrad Robins | Nov 9, 2021
Background – Building trust through long-term collaboration
Karl Luker was introduced to Dan Gateshill at ASC Finance Business’ Hampshire & Dorset office, by his accountant in July 2017.
Having successfully assisted Karl on two previous occasions, Karl approached Dan to support him with finance in buying a house with a view to redeveloping the site into 2 houses to sell on. Having taken the time to fully understand the funding requirements for the project, along with the features that Karl required, we approached one of our trusted lenders and received indicative terms within 1 working day. This was subject to planning permission, and once the client had this, they had the formal offer, subject to security valuation within 7 working days.
Challenges – Balancing multiple finance needs efficiently
Karl was remortgaging his home to use as the deposit for the purchase of the property, as such we co-ordinated with his Mortgage Broker, Accountant and Solicitor to ensure all required documents were received by the involved parties, including liaising with the Surveyor to ensure the valuation report was received in a timely manner, leaving Karl with more time to run his business.
Solution – Tailored finance and close client support
We completed on the purchase in January 2021 with a £639,000 development finance facility. We met with Karl at the property to see how he was getting on with the redevelopment, and asked Karl on what he felt were the benefits of working with ASC Finance for Business.
What do you feel was the benefit of working with ASC? “I feel that ASC will endeavour to find the best deal on the market, tailored to my specific needs. “
What were you particularly impressed and or unimpressed with? ASC un-tied lots of minor issues created by other brokers over the years on my various mortgages. Dan and Lisa worked hard to both simplify my borrowing and to put new finance in place. I’m now in a much better position and looking for my next project.
Do you think it’s better to use a broker when applying for commercial finance and if so, why? I’d say so as they have a wide platform of lenders on the open market, and they may find you a better deal. If you go direct to lenders, then they may not give you the extra benefits that ASC may find.
How likely are you to recommend ASC? Very likely.
Is there anything that you feel we could do, or do better to improve our services? Nothing, it’s been a great 4/5 years with ASC, and I look forward to working with Dan and the team on future projects.
www.fourcornersproperties.co.uk
www.facebook.com/FourCornersPropertiesLtd
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Outcome – A successful project and lasting partnership
Dan Gateshill, Regional Director for ASC in Hampshire, Dorset and Isle of Wight commented “Karl is a long standing client of ASC and we have built a great relationship over the last five years. On first meeting with him, it was clear that Karl needed assistance in simplifying his affairs, so although complex to begin with, subsequent finance applications have been quicker to arrange as a result. It has been a pleasure to assist Karl with his various finance requirements and we look forward to helping to add further value to his property portfolio in the near future”.
Working with ASC Finance for business has enabled Karl to make the below transformation to the property
Contact Dan to see how we can help you to secure the right finance for your project whether you are near ASC Hampshire, ASC Dorset or ASC Isle of Wight. Dan can also be found on Facebook and Linked In.
by Conrad Robins | Oct 6, 2021
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.
by Conrad Robins | Oct 6, 2021
Background – Supporting a property developer through funding challenges
ASC Essex secured finance for a client, an experienced developer, who was referred to us by an accountant. We were able to help the client raise an additional £400,000, taking the total debt to £1,300,000 with a GDV of £3,400,000.
Challenges – When unforeseen costs threaten project completion
We all know that things do not always go to plan, and this situation was a good example of that. In this case, even though the client had previously secured finance in the first instance, due to unforeseen circumstances, they needed further funding to complete the project. In this case, the client’s previous lender would not provide further funds (even though they had significant experience with the client and the GDV was still sub 50%).
Solution – Finding alternative finance under pressure
We used our skills and contacts to find a lender to advance the extra funds taking a charge behind the client’s bank. Even then at the last minute the initial bank declined to give a second charge, we then managed to take a second charge on an alternate property and get the funding in place within the original time scale the client needed. Even in the most challenging circumstances and with many last-minute changes, we still managed to get the funding in place for them to complete the project without incurring even more costs to the client.
Outcome – Delivering results when it matters most
Our success here was in making sure, even with the unforeseen hurdles that came up, the client got what they needed in the timeframe they needed it. ASC have been supporting SMEs with finance for 50 years, a safe pair of hands and reassurance for clients in these difficult circumstances.
Sometimes our clients are looking for finance for various projects, but either do not know where to turn, have been turned down by their bank, or are simply looking for the expertise and guidance to help them get the finance to ensure that their projects can take off. ASC always delivers a refreshingly personal service and takes away the hassle.
by Conrad Robins | Dec 14, 2018
Background – From planning to a new development opportunity
Nick Ridgway acquired a property which he bought for cash and then set about gaining planning permission for a housing development project. After a 12 month period, he eventually got planning for the construction of 9 units and subsequently started finalising his plans for the project.
Challenges – When the bank refused to fund the build
He initially went to see his own bank who he had known for a number of years and had successfully completed previous projects with, to say that he was looking for funding for the development. They initially indicated to him that this would not be a problem, so he started working on the site by using his own cash to start the development. After a period of some time, and having had no feedback from the bank he chased them again only to discover that the bank announced they were not prepared to advance the funds due to their internal restrictions on development finance. This left Nick in a very difficult situation in that he had committed himself to the project and used most of his cash resources.
Solution – ASC steps in to secure full funding
He therefore took the opportunity to meet up with our ASC Essex Regional Director to discuss the situation. He reviewed the development plan and looked at his cash flow and requirements and was impressed with the information provided to him. He also delved into Nick’s experience and was satisfied that this was a sound financial project and was confident that he would have lenders who would be keen to back the project. As a result, Nick instructed ASC to help him put the funding in place and Steve set about the task with a clear timetable from Nick that the matter had now become urgent.
We therefore approached a number of development finance lenders and eventually decided on one of his main contacts to look at the project. The lender was very impressed with what he saw and within a fairly short timetable confirmed that they were prepared to advance 100% of the development costs, together with an interest roll up for a 12 month facility for him to finish the site and arrange the necessary sales. The legals as always took a little time to complete but after pushing from both Nick and ASC, they were able to complete the transaction within 6 weeks of their original meeting.
Outcome – Project back on track and lessons learned
Nick was mightily relieved when the funding was released and has been working on the site non-stop to get it completed during the summer period so he can start the sales process as soon as possible. He commented “I severely regret only speaking to my own bank when I initially needed the finance and as a result, their overall lending attitude gave me a lot of stress which if I had gone direct to ASC I would not have had. I would therefore recommend other clients in this situation to look at all the options first and speak to ASC Finance and use their experience of the sector to ensure they get the best deal available”.
