Development Finance for Luxury Properties
We believe in the importance of building strong broker to client relationships, as dealing with finances requires a lot of trust. And this case study where we secured finance for luxury properties is a great example of how familiarity can help when seeking funding.
Securing Finance for Luxury Properties
A longstanding personal relationship helped secure funding for a luxury development in Devon. How? Well, having inherited land from his family, our client was able to increase its value by 600% by securing planning permission for two new luxury properties in a development that would have been worth an estimated £3.5m.
There were several challenges: notably the value of property in that part of the country, and the fact that the client had paid only planning and professional costs, and had put little other finance into the project.
What We Did
We knew the client well and he already had substantial development experience. We had even supported him through previous projects. This gave us the confidence to present his case to funders, having experience of his skills and what we thought would be the benefits to backing the project.
The development was funded at 55% of GDV at a competitive 7% pa, enabling the developer to get the luxury properties built and ready for sale. These are currently under construction and we can’t wait to see how they turn out.