November 11th, 2016.
Deal of the Month: Fast Finance for Development Project
Sometimes finance promised by a private investor doesn’t come through. That was an issue for the client in today’s Deal of the Month.
The client came to us needing funds quickly. He had been self-funding a development project which was to build four properties in South Wales, however his own funds had run out. He was unable to finish the build as he had been promised funds by an equity investor, but at the last minute (due to unknown circumstances) the investor had withdrawn his offer.
A loan of £360,000 was needed in staged payments to complete the build which was three weeks away from being wind and water tight. And the funds were needed quickly, as every day that passed meant that the client was incurring additional costs – no work could be completed on the site which meant that the completion time for the project would be extended too.
Our broker, Tom, ensured all the elements for the current project, including current building regulations, warranties, background for the borrower etc., were brought together the same day and submitted to three funders (due to the current unique state of the property).
Terms were received the same day and upon review, the client found them more than reasonable and wanted to proceed. A valuation was organised and the solicitors were instructed that day; assistance was provided for the next steps including completion.
The valuation was returned in just four days and the funds required against the value of the asset sat comfortably with the funder. Three days after, the final review of all documentation and searches was complete and funds were released.
Total time from initial enquiry to funds being released was eight days, giving the developer the much needed funds to move forward with the project.
Due to our efficiency and speed handling this initial funding requirement, we are now looking at refinancing the site for the client on completion.