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 | Feb 24, 2023
Background – Expanding the business through property acquisition
Our clients, an engineering company, owned two commercial investment properties. They wished to buy a third light industrial property for £1 million adjacent to the two they own where they would relocate their business. Simple you might think, however they needed to borrow the full purchase price plus stamp duty and VAT. They approached their own bank who declined to assist. However, we made a more compelling application to the same bank and were able to demonstrate that they could afford the repayments on the total debt, and that taking a charge on one of the existing properties together with the new one would be sufficient security for them to lend against.
Challenges – Legal complexities with property security
The bank agreed. Valuations were done, signed off and solicitor instructed. The client’s solicitor then informed us of a little-known piece of English law stating that if someone owns a number of adjacent properties, the rights and easements fall away and if the bank had to exercise its rights over the properties being offered for security, then these two units would not have the rights required… The only way was to offer the bank security over all three units.
Solution – Structuring the deal to satisfy lender requirements
Luckily we knew the right people to approach at the bank and this was quickly proposed by us and subsequently executed with the correct caveats and the transaction moved to completion.
Outcome – Successful £1m loan completion
Thanks to ASC’s expertise and lender relationships, the £1m loan was successfully completed, allowing the client to expand their operations and secure their long-term growth. This case highlights how strategic financing can unlock new opportunities — learn more about our Commercial Mortgages and how we can support your next project.
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
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.
by Conrad Robins | Oct 6, 2021
Background – Supporting a property developer through funding challenges
David Bamber, ASC Director in Essex, secured finance for a client, an experienced developer, who was referred to us by an accountant. ASC was able to help the client raise an additional £400,000, taking 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
David used his 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, David 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
David’s 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.
