October 12th, 2020. Tom Lee
Deal of the Month October 2020: Development Refinancing During Lockdown
We may be going through strange times, but large-scale borrowing is still possible. This has been proven by a recent deal we brokered, providing over three million pounds in much-needed finance for a development project.
About the Deal
Our client came to us late last year seeking a loan of £3.1m. They required funding to cover the cost of works already completed on site owed to their contractor, and to complete the remaining construction for the project.
The site was purchased by the client a number of years ago and currently had an old pub standing on part of it. Planning had been secured for 16 flats and works started, including groundworks and initial building on ground level.
The client did have experience in refurbishments and extensions – experience that helped their application – but this was their first major ground-up scheme.
The scheme was offered in February, just before the pandemic, and sadly the lender soon reviewed their offering and reduced the LTGDV, so our client had to refinance some of their other properties to secure the funding required.
Over the last few months, we have supported our client through the lockdown, managing lender conversations, and updating reports with QS and valuations.
We’re pleased to say that the funding was released just as the UK left lockdown at a low rate of 5.05% above libor, and the client has the finance they need to build the flats.
Do You Require Development Finance?
Slowly, but surely, the world is starting to open back up, and we continue to secure finance deals to get the UK property market moving again.
Article By Tom Lee
October 12th, 2020
Tom heads up the development division at Pure. He has over 20 years of experience in the financial sector and since joining Pure in 2013, has become an integral part of the business’s growth and direction.
Tom has a wealth of experience providing debt advisory on large, complex deal structures for developers and investors across all asset classes, throughout the UK.
He has built a strong network across the property and finance sector, which enables him to provide a total package solution to his clients and contacts, with whom he has built long standing relationships.See more articles by Tom